Coinbase (COIN) shares dropped nearly 8% during early trading on April 29. This decline tracked a broader sell-off across the cryptocurrency sector.
Market sentiment shifted following Robinhood’s (HOOD) first-quarter earnings report released on April 28. Robinhood reported a 47% year-over-year plunge in cryptocurrency transaction revenue. The competitor also missed consensus expectations for both total revenue and profit.
Investors expressed concern that Coinbase may face similar cooling retail trading activity when it reports earnings on May 7. This negative outlook overshadowed Coinbase's April 29 launch of new perpetual futures contracts for various U.S. stocks.