In after-hours trading, shares of Coinbase (COIN) saw nearly a 3% decline following the announcement of a significant revenue fall in the first quarter of 2025, falling short of what analysts had expected due to a cooling market influenced by economic uncertainties in the U.S.

Highlights:

• In Q1, Coinbase recorded $2 billion in revenue, down from $2.27 billion in Q4 and below the forecast of $2.1 billion by analysts.
• Trading volume dropped 10% to $393.1 billion, while transaction revenues fell 19% due to weak market activity.
• Analysts had already reduced their forecasts, predicting a decline since January linked to broader economic factors.

Coinbase indicated that Q1 experienced rising crypto asset volatility, with BTC hitting a historic high in January. However, the subsequent decline in crypto prices was seen as a consequence of tariff policies and economic uncertainties.

Several financial institutions, including J.P. Morgan, Barclays, and Compass Point, had preemptively lowered their forecasts as they anticipated a slowdown in crypto trading.

Coinbase’s recent acquisition of the derivatives exchange Deribit for $2.9 billion is viewed as a strategic move to establish its leadership in the global crypto options market, surpassing rivals like Binance.

Learn more: The acquisition is expected to set a precedent for the derivatives market, a matter that will be of keen interest to investors.