Coinbase, the largest US crypto exchange, has recorded its worst quarter since the dramatic collapse of FTX in late 2022.

Coinbase’s stock (COIN) plummeted by 30% in Q1 2025, mirroring the steep losses seen across the broader crypto market.

Crypto Stocks and Assets Bleed Red in Q1

According to Bloomberg, the sharp decline has hit several other major crypto-related stocks as well. This includes Galaxy Digital, Riot Blockchain, and Core Scientific, all of which have experienced significant downturns.

Furthermore, the broader crypto market is facing tough times. Bitcoin, which has long been considered the bellwether of digital assets, has dropped by 10% this quarter. More dramatically, Ethereum (ETH) has seen a staggering 45% decline. These losses reflect a broader downturn in the crypto market, fueled by several macroeconomic factors.

Analysts point to the global uncertainty surrounding the US economy, including concerns over Trump’s tariffs and recession fears. This has resulted in a general “risk-off” mood among investors.

“In a risk-off mood, no asset is safe stocks, crypto, all get hit. It’s more about sentiment than fundamentals in those moments,” an investor commented on X.

While some point to these macroeconomic pressures as the primary cause, others argue that the market’s underperformance is more due to lingering fears of trade wars and broader geopolitical instability.

“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,” another X user remarked.

Coinbase has been hit especially hard in this downturn. Coinbase’s revenue model is heavily reliant on altcoins and transaction volumes beyond Bitcoin. Hence, the overall market drop could have made a mark on the exchange’s stock prices. Moreover, the news comes as Coinbase users have collectively lost more than $46 million to scams in March.

While crypto has been in a freefall, other assets have fared much better. Gold, for example, has surged, posting its best quarter since 1986 as investors flock to safer assets amid the market turmoil. The shift toward traditional assets is particularly noticeable as the post-election crypto hype, which briefly boosted Bitcoin’s value to $109,000, begins to fade.

Despite the overall market challenges, some crypto-related firms have shown resilience. MicroStrategy, led by CEO Michael Saylor, remains in the green year-to-date, bolstered by its substantial Bitcoin holdings.

For now, the crypto market is left to weather the storm, with analysts continuing to scrutinize the interplay of macroeconomic factors and its impact on digital assets.