Coinbase (COIN) shares experienced a significant decline of over 30% during the first quarter of 2025, according to Bloomberg. This substantial drop was primarily driven by escalating concerns about the US economy’s impact on digital asset prices. The stock opened at $257 on January 2nd and closed the quarter below $172. This marks Coinbase’s worst quarterly performance since FTX’s collapse in November 2022. Other crypto-linked firms also suffered significant losses, with shares of Galaxy Digital Holdings (GLXY.TO), Riot Platforms (RIOT), and Core Scientific (CORZ) all plummeting during this quarter. 685M to $765M in subscription revenue is expected for the first quarter. Coinbase’s recent shareholder letter reveals that transaction revenue through February 11th reached approximately $750 million. Analysts attribute this performance decline to a combination of concerns regarding a potential US recession and broader market uncertainty, as reflected by declining S&P 500 index performance in Q1 2025. A lack of investor confidence fueled the downturn, with trading activity for crypto-linked companies mirroring Bitcoin’s struggles. The cryptocurrency market experienced significant volatility in Q1 2025, with key indicators like Ethereum’s price plummeting more than 45%. Coinbase stock performance was a stark contrast to the optimistic outlook that prevailed earlier this year, when optimism was centered on Trump’s election and speculation about potential economic relief. Analysts believe that while Coinbase’s recent earnings report shows promise, the company remains vulnerable to volatility in the wider market climate.