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## Coinbase Shares Might Plunge 20% Because of a Death Cross Pattern
Coinbase shares have endured losses in 2024 as the digital currency arena encounters difficulties. The firm’s valuation has diminished by more than $38 billion.
Having reached its apex at $350 last November, the shares have nosedived to approximately $190. Technical metrics imply that additional slumps might be on the horizon.
## Digital Currency Values Have Decreased This Year
The current downturn aligns with a notable decrease in the values of Bitcoin (BTC) and the majority of altcoins:
* Bitcoin has declined from its record high of $69,400 in November 2021 to its present value of around $64,400.
* Ethereum (ETH) has also undergone a reduction from its high of $4,100 in the prior year to roughly $3,000.
* The collective market capitalization of all digital currencies has shrunk from over $3.8 trillion in 2024 to $2.76 trillion.
Coinbase’s performance is intimately linked to digital currency values. Traditionally, its operations flourish when values escalate and endure when they diminish. For instance, its income surged to $7.3 billion in 2021 due to the rise in the majority of token values, prior to plummeting to $3.1 billion in the subsequent year when Bitcoin crashed to $16,000.
In 2023, total income reached $3.1 billion, doubling to $6.6 billion in 2024.
Luckily, Coinbase has broadened its operations in recent times, signifying that transaction income is no longer its singular origin of revenue. The latest economic outcomes reveal that transaction income was $1.5 billion in the fourth quarter, whereas subscriptions and revenue were $641 million.
Its subscription and service revenue is swiftly expanding due to its stablecoins, blockchain rewards, custody charges, and interest and finance charge revenue.
Coinbase is vigorously aiming to broaden its operations in other sectors. As an illustration, its layer-2 blockchain network, Base, has evolved into a significant participant in the sector. In the last month, protocols on the network have handled over $22 billion in transaction volume, with a total value secured of over $3.1 billion.
Rumor has it that Coinbase is negotiating to procure Deribit for a tidy sum of $4-5 billion, a maneuver that would considerably amplify their foothold in the flourishing crypto derivatives sector.
However, there’s a catch: Coinbase is embroiled in a fierce battle TruBit Collaborates with Morpho to Introduce DeFi Unearned Revenue in Latin America worldwide behemoths such as OKX, HTX, and Binance.
Notwithstanding the upbeat outlook from Wall Street experts, who anticipate Coinbase’s yearly income to surge to $8.12 billion this year and $8.38 billion the subsequent year, the equity might be poised for a decline. They are projecting the equity to ascend from its present $189 to $318.
The diagrams are exhibiting some menacing configurations, implying a prospective plunge to $150. A pessimistic pennant has materialized, and a death intersection is approaching, where the 50-day and 200-day shifting averages converge. This could denote a precipitous recession in the approaching weeks.
Established in June 2012 by Brian Armstrong and Fred Ehrsam, with Armstrong still at the rudder as Chief Executive Officer, Coinbase is steering through some precarious straits.
