Coinbase Sinks Nearly 20% for Worst Weekly Showing Since September 2024 as Traders Rush for Protection

Shares of Coinbase (Nasdaq: COIN) plunged 19.6% last week to close at $314.69, marking the exchange’s steepest weekly decline since September 2024, according to TradingView. The sell-off was driven by underwhelming Q2 results and renewed scrutiny over the company’s valuation relative to fundamentals.

On Thursday, Coinbase reported Q2 earnings per share of $0.12—a sharp 88.8% decline year-over-year. Revenue came in at $1.5 billion, missing FactSet’s $1.59 billion estimate, while EBITDA dropped to $512 million as transaction revenue fell 39% quarter-on-quarter.

The earnings miss validated warnings issued in late June by research firm 10x, which described COIN’s prior rally as stretched and recommended shorting the stock against a long bitcoin position. In early July, H.C. Wainwright downgraded Coinbase from Buy to Sell, citing similar concerns.

Options Traders Hedge as Volatility Rises

As shares slid, traders piled into put options for downside protection. Market Chameleon data shows COIN’s one-year put-call skew rose to 2.6% on Friday—its highest since April 21—signaling growing demand for bearish exposure.

Put options, which offer protection against price declines, now trade at a significant premium to calls, underscoring heightened risk aversion among investors.

With macroeconomic uncertainty rising and crypto markets under pressure, analysts say Coinbase could face further volatility heading into Q3.