Coinbase Buckles 10% as Crypto Stocks Falter Despite Bitcoin Topping $45K

Coinbase, one of the leading cryptocurrency exchanges, saw a significant decline of 10% in its shares despite the strong performance of bitcoin, which reached a 21-month high. This drop in value came as crypto stocks, including bitcoin miners like Marathon Digital and Riot Platforms, experienced a reversal in gains and closed lower. Interestingly, MicroStrategy was one of the few crypto names that managed to post gains on the day, closing with a 7.9% increase. The decline in crypto stocks occurred as bitcoin surged above $45,000, buoyed by anticipation of regulatory approval for a spot BTC ETF in the U.S. This approval could potentially attract a wider investor base, with some analysts predicting over $14 billion in inflows during the first year alone. However, Singapore-based 10x Research noted that crypto stocks appeared overvalued compared to bitcoin, given their rapid gains in the last quarter. Despite the recent downturn, Coinbase shares still demonstrate significant growth, nearly doubling in price over the past 10 weeks after rallying 150% from late October to late December.