Major crypto-linked companies like Coinbase, Block, and Robinhood saw their stock prices drop significantly this week. The declines stem from broader market pressures, including the ongoing U.S. government shutdown and the aftermath of a $19 billion liquidation last month. Investor caution is evident, with the Fear and Greed Index at 20, signaling extreme fear.
The crypto market has remained in negative territory, impacting stock prices of associated firms. Coinbase shares fell more than 9%, despite reporting strong third-quarter results with net income of $433 million and revenue of $1.8 billion. Block Inc., led by Jack Dorsey, declined about 14% after missing earnings estimates, reporting 54 cents per share against expectations of 67 cents, due to slower growth in its Square payments unit.
Robinhood Markets slipped 12.42%, even as it benefited from higher crypto trading activity in the third quarter. However, management changes and slowing momentum in crypto operations tempered investor enthusiasm. Year-to-date, Robinhood's stock has risen 249.87%.
Broader pressures affect companies holding digital assets. Evernorth faces unrealized losses of about $78 million on its XRP holdings, acquired just over two weeks ago. Strategy's shares dropped 53%, trading near $221, tied to Bitcoin exposure. Metaplanet, holding 30.8 BTC purchased at an average of $106,000 each, reports roughly $120 million in unrealized losses, with its stock down around 80% from its peak.
These declines coincide with the U.S. government shutdown and last month's $19 billion crypto market wipeout, prompting investors to avoid higher-risk assets. Bitcoin briefly fell below $100,000 but is now trading at around $102,300. Crypto.com CEO Kris Marszalek urged authorities to review how exchanges handled large-scale sales amid stability concerns.
The Fear and Greed Index at 20 reflects extreme caution, as the sector seeks stability.