Coinbase Dips 10% Despite Bitcoin Surpassing $45K Threshold

• Coinbase Shares and Bitcoin Miners Suffer Despite BTC's Robust Performance
• Coinbase Experiences Worst Daily Drop since 2023
• Bitcoin Miners Fail to Benefit from Bitcoin Rally
• MicroStrategy: A Rare Green Light on Tuesday
• Decline in Crypto Stocks Amidst BTC's Surge
• 10x Research: Crypto Stocks Overvalued Compared to BTC

Coinbase Shares and Bitcoin Miners Suffer Despite BTC's Robust Performance

The shares of Coinbase, along with bitcoin miners, experienced significant dips on Tuesday in the face of BTC's strong performance ahead of the spot ETF decision. It was observed by some research firms that Crypto stocks seemed overvalued after their price multiplied in the last quarter.

Coinbase Experiences Worst Daily Drop since 2023

The crypto exchange behemoth, Coinbase (COIN), suffered its most severe daily drop since the middle of 2023 on Tuesday, despite bitcoin (BTC) surging to a 21-month high. According to TradingView data, the shares of Coinbase plunged 9.8% during the first trading session of the year, ending the session at just under $157. This downturn extended the losses from Friday due to year-end profit-taking after the stock price almost quintupled in 2023.

Bitcoin Miners Fail to Benefit from Bitcoin Rally

Bitcoin$42,260 -0.64% miners also did not see any uplift from the bitcoin rally, reversing significant early moves higher to close slightly in the red. Shares of Marathon Digital (MARA) and Riot Platforms (RIOT) fell by 1%-2% from Friday's closing price and were almost 10% lower than their opening price.

MicroStrategy: A Rare Green Light on Tuesday

MicroStrategy (MSTR), a rare name in the green on Tuesday, closed significantly lower than early highs but still managed to achieve a 7.9% gain.

Decline in Crypto Stocks Amidst BTC's Surge

The drop in crypto stocks occurred as BTC surged above $45,000 for the first time since April 2022. This rise was due to market participants buying ahead of what is expected to be a soon-to-be U.S. regulatory approval for a spot BTC ETF. Analysts anticipate that such vehicles could significantly widen the investor base for the asset. Galaxy predicts over $14 billion of inflows in the first year. However, as of writing, bitcoin had fallen back from the day's highs to $44,900, still increasing by 3% over the past 24 hours.

10x Research: Crypto Stocks Overvalued Compared to BTC

A report released on Thursday by Singapore-based 10x Research stated that crypto stocks seemed overvalued in comparison to BTC after their tremendous gains in the previous quarter. Many shares doubled or increased even more over the final weeks of the year. For example, Coinbase shares rallied 150% from late October to a $187 high on December 27. Despite the recent downturn, the stock has almost doubled in price over the past 10 weeks.

Edited by Jonathan Stoker