Crypto stocks fell Friday, as broader market concerns dampened recent optimism. Coinbase shares fell by double digits following a revenue miss, despite signs of improved volumes. Bitcoin fell below $115,000, dragging other cryptocurrency-related names like MicroStrategy and Robinhood down as risk sentiment shifted sharply.
What made the mood on the market on Friday turn bad?
On Friday, Wall Street was hit by a wave of market unease that brought down both tech and crypto stocks. The July jobs report was worse than expected, which made people worry about the economy slowing down. At the same time, it made the case for possible interest rate cuts stronger. But investors weren’t happy. Instead, a lot of people went into “risk-off” mode and took their money out of risky assets.
That change hit the crypto market hard, and Bitcoin fell below $115,000 after briefly hitting $120,000 earlier this month. Ethereum and other big coins followed suit, making the retreat even bigger.
What caused Coinbase’s stock to drop?
Coinbase (COIN) was one of the companies that lost the most money on the day, falling 17% after announcing earnings late Thursday. The company did see some signs of improvement in trading volume this quarter, but revenue was still lower than expected. That miss, along with the bad news on Friday, made the stock drop.
Robinhood (HOOD) was down almost 2% even though it made a lot of money earlier in the week. MicroStrategy (MSTR), the company that owns the most Bitcoin on the stock market, fell 8%. It’s all part of a bigger retreat as investors rethink risk and get ready for more ups and downs.
Is this just a correction, or is it something bigger?
Analysts still don’t agree. For now, some people have lost interest in crypto. Morgan Stanley gave Robinhood a “neutral” rating again, which shows that they are being more careful. Vanda Research says that retail investors are also less interested in speculative names.
Still, some people aren’t ready to give up. Oppenheimer lowered its price target for Coinbase a little bit, but it still sees room for growth and calls the pullback a “buying opportunity.” Deutsche Bank even raised its price target for Robinhood to $118 because it is sure that the company will grow.
Right now, we have to wait and see. Crypto is still doing well because of recent regulatory wins, but the market may stay shaky for a while. People who aren’t investing are wondering if this is just a bump in the road or a trend.
Also read: Bitcoin and XRP Dip: Bull Market Pause or Real Trouble?
