New York, Feb 3, 2026, 20:39 (ET) — Market closed
- COIN dropped over 4% amid a slide in bitcoin and a wider pullback in risk appetite.
- Forced liquidations piled up again as traders cut back on leveraged crypto positions.
- Attention now turns to regulatory news and Coinbase’s earnings report scheduled for next week.
Shares of Coinbase Global (COIN) closed Tuesday 4.3% lower at $179.66, moving between $174.06 and $191.88 during the session. The Nasdaq-listed crypto exchange followed bitcoin’s dip, with the cryptocurrency dropping 2.8% to roughly $76,561 after hitting a low near $72,971.
With cash trading wrapped up, the upcoming session will reveal if crypto prices can hold steady and if volume returns. Coinbase’s revenue depends largely on customer activity, which can vanish quickly when prices drop sharply.
Crypto traders have been forced out of leveraged bets—positions backed by borrowed funds—as prices tumbled. Around $2.56 billion in bitcoin positions were wiped out recently, according to CoinGlass, amid a broader crypto selloff and President Donald Trump’s announcement that Kevin Warsh would be his pick for the next Federal Reserve chair. “The biggest risk to prices at these levels have been outside forces,” said Jim Ferraioli from Charles Schwab. David Morrison at Trade Nation added, “Investors were looking for an excuse to lighten up and they finally got several.” Reuters
Sentiment was cautious beyond the crypto space. The S&P 500 dropped 0.84%, the Nasdaq Composite slid 1.43%, and the Dow Jones Industrial Average declined 0.34%. Investors are digesting the impact of new AI tools from Anthropic and what they could mean for software firms. “Many areas, especially around AI, are priced for perfection,” said John Campbell, senior portfolio manager at Allspring Global Investments, ahead of earnings from Alphabet and Amazon this week. Reuters
Policy remained a sticking point. Legislation on U.S. crypto market structure is still gridlocked after Monday’s White House meeting with banks and crypto firms ended without a deal. The dispute centers on whether crypto companies can offer rewards on stablecoins — tokens usually pegged to the dollar — which these firms say attract customers, but banks argue could drain deposits from insured lenders. White House spokesman Kush Desai described the talks as “productive,” noting participants included the American Bankers Association and the Blockchain Association. Reuters
Crypto-linked stocks have tumbled along with Bitcoin. Over the last five trading days, Strategy, Circle, and Gemini have all dropped by at least 15%, according to Investopedia.
Coinbase faced some routine technical glitches. According to its status page, delayed sends and receives on the Kava network started Monday and were resolved by Tuesday. The company confirmed that buys, sells, and fiat withdrawals and deposits were unaffected. The site also reported a separate delay on the Polkadot network, along with a balance-display problem linked to its Predictions feature.
On Monday, Coinbase announced that Liquifi will become Coinbase Token Manager starting Feb. 28. The revamped tool is designed to help token issuers automate vesting, distribution, and compliance tasks. Coinbase also confirmed it will integrate with its Prime custody service.
But the bitcoin connection works both ways for Coinbase. While volatility can boost trading activity, a sustained slump may keep users sidelined and increase the chance the company takes a cautious tone on volumes.
Traders on Wednesday will be looking to see if bitcoin can hold steady after hitting new lows, and if talks on crypto legislation make any headway. Coinbase is set to release its fourth-quarter and full-year 2025 earnings on Feb. 12, after the market closes. The company also announced a webcast scheduled for 2:30 p.m. PT that day.
