Coinbase Worst Quarter Since FTX as Crypto Falls 30%

Key Points

• Coinbase Worst Quarter Since FTX as Crypto Falls 30%
• Bitcoin and Ethereum plunge 10% and 45%, respectively
• Investors flee to gold as safe-haven asset spikes
• Scams cost Coinbase users $46M in March alone

Coinbase has officially recorded its worst quarter since the FTX collapse, losing 30% of its stock value in Q1 2025. The crypto exchange giant, often seen as a bellwether for U.S.-based digital asset companies, is now at the center of broader concerns surrounding the health of the crypto industry.

The crypto markets have been spiraling. Bitcoin dropped by 10%, while Ethereum saw a staggering 45% decline, shaking altcoin confidence and rattling even the most seasoned investors. This plunge reflects a loss of investor appetite for high-risk assets amid growing macroeconomic uncertainty.

Coinbase’s Rocky Q1: Crypto exchange Coinbase faced its worst quarter since 2022’s FTX collapse. Shares dropped 33%, with industry-wide crypto mining firms also taking hits. pic.twitter.com/uJJ4k0rvMY

— Triana Agent AI (@TrianaAgent) April 1, 2025

This is particularly concerning for Coinbase, whose business model heavily relies on altcoin transaction volumes. When trading dries up, so do revenues.

To make matters worse, Coinbase users lost over $46 million to scams in March alone — a major blow to trust. These scams come amid growing concern over security across the ecosystem, including rising threats from malware like Crocodilus, which has targeted Android crypto wallets (read more here).

Market downturn driven by macro fears and trade war risks

The wider crypto downturn isn’t isolated. Other crypto-linked stocks like Galaxy Digital, Riot Blockchain, and Core Scientific also posted heavy Q1 losses, showing that sentiment has shifted across the entire sector.

Much of the sell-off is attributed to global economic jitters. Investors are worried about a potential U.S. recession, inflation, and the return of Trump’s aggressive trade policies, which are once again stirring markets. While some believe Trump is pro-crypto — as explored in detail in our coverage of his stance on Bitcoin mining (read more here) — the fear of trade wars has clearly overshadowed the optimism.

As one user posted on X:

Exactly. In a risk-off mood, no asset is safe stocks, crypto, all get hit. It’s more about sentiment than fundamentals in those moments.

— GA Spark (@XRP_Spark) March 31, 2025

Another investor echoed the mood:

Trump’s trade wars are driving markets into a panic.

As much as he is doing for crypto the macro market conditions are speaking louder – as bullish as the news is from the white house –

His trash trade war is squelching any price surge.

— DAVID BIANCHI (@davidbianchi) March 9, 2025

Ethereum’s 45% drop is particularly surprising, given recent bullish news in the ecosystem. Just last week, Binance’s April Fools joke about burning CZ’s wallet stirred speculation and volatility in altcoin markets (read the full story).

Even Bitcoin, which had seen a huge post-election rally that briefly pushed it to $109,000, has now retreated. That hype, partly driven by crypto investors planning bold moves like funding SpaceX flights (see more), is now fading.

Gold shines as crypto bleeds — but not all is lost

While digital assets suffer, gold has surged, posting its best quarter since 1986. The contrast couldn’t be clearer. Investors are ditching high-risk assets and piling into traditional safe havens. The “crypto winter” mood is setting in fast, reversing much of the bullish sentiment from late 2024.

Still, some companies are managing to weather the storm. One standout is MicroStrategy, whose Bitcoin-heavy treasury strategy continues to pay off. CEO Michael Saylor remains defiant in the face of volatility, and MicroStrategy’s Bitcoin acquisitions have kept the company in the green year-to-date (dive deeper here).

But these are outliers. The broader narrative remains grim. Coinbase’s 30% stock collapse in just one quarter is more than just a red flag — it’s a wake-up call. It signals that the entire crypto market is entering a new phase of uncertainty, where macro forces dominate and investor sentiment can turn on a dime.

Retail and institutional investors alike are holding back, waiting to see how deep this correction goes. Some believe that clearer regulatory frameworks, reduced inflation, or central bank support might bring the bulls back. But for now, crypto must endure a tough, sentiment-driven storm — one that is taking down even its biggest players.