Bitcoin Correction Triggers Selloff in Coinbase, Block, and Robinhood Shares

TLDR

• Coinbase, Block, and Robinhood stocks fell 11-14% this week despite some companies reporting strong earnings, as broader market fears outweighed positive results.
• Bitcoin dropped below $100,000 on November 7, marking a 20% correction from its all-time high, while 238,679 traders were liquidated for $711.8 million in 24 hours.
• October’s $19 billion liquidation event continues to weigh on investor sentiment, with concerns about hidden vulnerabilities in the crypto industry.
• Coinbase beat earnings expectations by 45% with $1.50 EPS versus $1.05 expected, but shares still declined along with the broader market.
• Robinhood remains the best performer of major crypto stocks, up over 200% year-to-date despite recent weekly losses.

Shares of major crypto-focused companies dropped sharply this week as Bitcoin fell below $100,000 and broader market pressures mounted. Coinbase, Block, and Robinhood saw declines between 11% and 14%, erasing recent gains.

Coinbase Global, Inc., COIN

The selloff comes despite mixed corporate earnings from these companies. On October 30, Coinbase reported earnings per share of $1.50, beating analyst expectations of $1.05 by 45%. Quarterly revenue reached $1.86 billion, up 25% from the previous quarter and above the $1.8 billion estimate.

Coinbase has been advancing its “Everything Exchange” initiative to expand tradable assets on its platform. However, the positive earnings failed to support the stock price as broader market conditions deteriorated.

Block Inc., led by Jack Dorsey, faced selling pressure after missing quarterly forecasts. The company reported $6.11 billion in revenue versus the $6.34 billion consensus estimate. Investors also raised concerns about slowing growth within the Square payments unit.

Market-Wide Liquidations Hit Trading Platforms

On November 7, Bitcoin traded around $99,399, down roughly 3% on the day. The cryptocurrency fell back under the six-figure mark as liquidations swept through derivatives markets.

Across major exchanges, 238,679 traders were liquidated in 24 hours for a combined $711.8 million. The single largest loss was a $15.31 million Bitcoin position on Hyperliquid, according to CoinGlass data.

Bitcoin briefly reclaimed the $100,000 level but major crypto-linked stocks remained lower. At the time of reporting, Bitcoin traded at $100,501.

Robinhood delivered solid third-quarter results backed by surging crypto trading volumes. However, a leadership change and softer growth in its crypto segment overshadowed the earnings beat. The stock remains the best performer among the three companies, up more than 200% year-to-date.

October Liquidation Event Continues to Impact Sentiment

The ongoing pressure stems partly from October’s historic liquidation event. Roughly $19 billion in leveraged positions were wiped out during that period.

Crypto.com CEO Kris Marszalek called for a regulatory review into how exchanges managed the selloff. The episode raised concerns about hidden vulnerabilities in the crypto industry.

Analysts have scaled back their outlook for the crypto sector following these events. Bitcoin has corrected 20% from its all-time high.

ARK Invest CEO Cathie Wood revised her long-term Bitcoin forecast to $1.2 million by 2030, down from $1.5 million. Wood said the change reflects the growing dominance of stablecoins, which prompted ARK to reassess Bitcoin’s share of the global financial system.

Michael Saylor’s Strategy fell 3.78% to $228.80. The company announced a euro-denominated 10% Series A Perpetual Preferred Stock offering at €80 per share for 7.75 million shares. Strategy expects gross proceeds of €620 million ($715 million) to fund additional Bitcoin purchases.

Bitcoin mining companies also declined this week. Iris Energy slipped 9.57% to $60.60 despite beating expectations with a $384.6 million profit and 355% revenue growth. Cipher Mining fell 7.30% to $20.13 despite posting a narrower loss that beat consensus by 87.5%.

American Bitcoin, Eric Trump’s mining venture, dropped 8.15% to $4.19. The company added 139 Bitcoin since October 24 and now holds 4,004 Bitcoin as of November 5.

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