Crypto Stocks Tumble as Bitcoin Rout Overshadows Kraken IPO Plans
Coinbase shares fall as a broad market sell-off sees Bitcoin dip below $90,000, prompting major exchange Kraken to signal a cautious approach to its public listing.
A severe downturn in the cryptocurrency market intensified on Wednesday, sending shares of publicly traded crypto companies tumbling and casting a shadow over the highly anticipated public listing of exchange giant Kraken.
The price of Bitcoin, the industry's bellwether, fell below $90,000 for the first time since April, deepening a rout that has erased nearly a quarter of the global crypto market's value—approximately $1.2 trillion—over the past six weeks, according to market analysis.
The broad-based sell-off has been fueled by a sharp reversal in market sentiment, macroeconomic pressures, and significant outflows from crypto-related investment products. Investors have withdrawn a net $2.9 billion from crypto exchange-traded funds (ETFs) globally this month alone, a stark reversal from the bullish inflows seen earlier in the year.
This market turbulence has hit crypto-related equities hard. Shares of Coinbase (COIN), the largest U.S. crypto exchange, have fallen more than 23% in November. The stock continued its decline this week, reflecting investor anxiety over the sustained drop in digital asset prices, which directly impacts the exchange's trading fee revenue. For Coinbase, which derives over half its income from trading fees, a sustained Bitcoin price decline is a significant headwind.
Adding to the sector's nervous tone, crypto exchange Kraken, a major competitor to Coinbase, signaled it is taking a measured approach to its own initial public offering. While the company confirmed it is preparing to go public, co-CEO Arjun Sethi emphasized that Kraken is in a strong financial position and sees no need to rush a listing amidst the current market volatility. Reports indicate the company is not feeling the pressure of "missing out" and will likely target a 2026 debut, a move analysts see as prudent in the volatile climate.
The cautious stance from Kraken contrasts with the wave of crypto firms that have pursued public listings in recent years, highlighting the chill that has spread through the sector. The market turmoil has disproportionately affected crypto-adjacent stocks, with Bitcoin mining companies such as Riot Platforms (RIOT) seeing share prices fall by over 17% since the beginning of November.
Despite the bearish short-term sentiment, some analysts maintain a constructive long-term view on sector leaders like Coinbase. The company posted strong third-quarter results, driven by a successful diversification into non-trading revenue streams like stablecoin operations and custody services. Analyst consensus still points to a 12-month price target for COIN significantly above its current levels, based on its strategic initiatives to become a more integrated financial platform. However, the path forward remains tied to the volatile crypto market and a challenging regulatory landscape.