Coinbase Sentiment Hits Rock Bottom as Bitcoin Correlation Crushes Options Traders

5 days ago 10

Michael Williams

Fri, December 12, 2025 astatine 9:10 AM CST 3 min read

A dark, moody graphic featuring 2 Reddit Snoo mascots, 1 smiling and 1 cracked and frowning. A jagged, breached reddish arrow points sharply downwards, intersecting the mascots and a circular, distressed 'COIN' logo to the right. The wide content is 1 of diminution and breached sentiment.

24/7 Wall St.

Coinbase dropped 36% from its precocious October precocious arsenic Bitcoin fell 17.8% from its November highest of $107,482.
Options traders study losses exceeding 50% connected semipermanent calls arsenic Bitcoin correlation overwhelms the company’s beardown fundamentals.
Robinhood surged 270% successful 2025 by diversifying gross beyond crypto portion Coinbase remains tied to Bitcoin volatility.
If you’re reasoning astir retiring oregon cognize idiosyncratic who is, determination are 3 speedy questions causing galore Americans to recognize they tin discontinue earlier than expected. instrumentality 5 minutes to learn much here

Shares of Coinbase (NASDAQ:COIN) closed astatine $275.09 connected December 10 arsenic retail capitalist sentiment connected Reddit remains profoundly negative. The banal carries a sentiment people of conscionable 17.2 retired of 100, placing it successful the "very bearish" category. Bitcoin's 17.8% diminution from its November highest of $107,482 to astir $90,000 has dragged Coinbase down 36% from its precocious October precocious of $343.78.

The symptom is palpable successful retail trading communities. One trader connected r/options posted astir their LEAP options (long-term calls expiring January 2027) purchased during the March-April dip. The trader wrote: "I astir reached $250k similar 2 months agone and present I'm down implicit -50% from ATH. My portfolio is bleeding." They explained their positions, noting "COIN has precocious vulnerability to BTC truthful that's truly not helpful."

LEAP Options Jan 2027 Exp. Down implicit -50% from ATH (Need Advice)
by u/Wrong-Helicopter5229 successful options

Despite Coinbase beating Q3 net estimates by 27% (delivering $1.50 per stock versus $1.18 expected) and posting a 43.7% nett margin, the banal has failed to clasp gains. Three factors thrust the bearish sentiment:

Bitcoin correlation overwhelms fundamentals, with COIN's beta of 3.7 amplifying crypto marketplace swings
Earnings volatility makes timing impossible, alternating betwixt 240% beats and 87% misses successful caller quarters
Options holders look magnified losses arsenic utmost volatility crushes clip value

The opposition with Robinhood (NASDAQ:HOOD) is striking. Robinhood shares person surged 90% implicit the past six months and 270% successful 2025, benefiting from diversification into lawsuit contracts, options trading, and fiscal services that trim reliance connected crypto volatility. While some platforms saw beardown Q3 results, Robinhood's broader gross basal has insulated it from Bitcoin's weakness.

Wall Street analysts support an mean terms people of $382 for Coinbase with 18 bargain ratings versus conscionable 2 sells, suggesting nonrecreational investors spot value. But with Bitcoin trading beneath $91,000 aft Wednesday's Fed-driven selloff and Reddit sentiment astatine multi-week lows, retail traders stay unconvinced that Coinbase tin interruption escaped from crypto's gravitational pull.