Coinbase Sentiment Hits Rock Bottom as Bitcoin Correlation Crushes Options Traders

By Michael Williams Published Dec 12, 9:10AM EST

Quick Read

Coinbase dropped 36% from its late October high as Bitcoin fell 17.8% from its November peak of $107,482.
Options traders report losses exceeding 50% on long-term calls as Bitcoin correlation overwhelms the company’s strong fundamentals.
Robinhood surged 270% in 2025 by diversifying revenue beyond crypto while Coinbase remains tied to Bitcoin volatility.
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Coinbase Sentiment Hits Rock Bottom as Bitcoin Correlation Crushes Options Traders — © 24/7 Wall St.

Shares of Coinbase (NASDAQ:COIN | COIN Price Prediction) closed at $275.09 on December 10 as retail investor sentiment on Reddit remains deeply negative. The stock carries a sentiment score of just 17.2 out of 100, placing it in the “very bearish” category. Bitcoin’s 17.8% decline from its November peak of $107,482 to around $90,000 has dragged Coinbase down 36% from its late October high of $343.78.

An infographic titled 'Coinbase Is Reddit's Most Hated Stock Today' detailing the stock's performance and sentiment. It features a gauge showing a Reddit Sentiment Score of 17.2 out of 100, labeled 'VERY BEARISH', and a 30-day sentiment trend graph declining from 42 to 17. Sections cover market context with Bitcoin (down 17.8%) impacting Coinbase (COIN, down 36%), 'Traders' Pain' discussing options losses over 50%, and 'Key Bearish Drivers' including high Bitcoin correlation, extreme earnings volatility, and options time decay. A 'Robinhood Contrast' section compares Coinbase's crypto reliance struggles with Robinhood's diversification success (HOOD up +90% 6 months, +270% 2025 YTD). The 'Analyst vs. Retail Divide' shows Wall Street analysts with an average price target of $382 (18 Buy, 2 Sell) versus retail investors (Reddit) who are unconvinced with sentiment at multi-week lows. The infographic is dated December 11, 2025.

Options Traders Are Bleeding Out

The pain is palpable in retail trading communities. One trader on r/options posted about their LEAP options (long-term calls expiring January 2027) purchased during the March-April dip. The trader wrote: “I almost reached $250k like 2 months ago and now I’m down over -50% from ATH. My portfolio is bleeding.” They explained their positions, noting “COIN has high exposure to BTC so that’s really not helpful.”

LEAP Options Jan 2027 Exp. Down over -50% from ATH (Need Advice)
by u/Wrong-Helicopter5229 in options

Despite Coinbase beating Q3 earnings estimates by 27% (delivering $1.50 per share versus $1.18 expected) and posting a 43.7% profit margin, the stock has failed to hold gains. Three factors drive the bearish sentiment:

Bitcoin correlation overwhelms fundamentals, with COIN’s beta of 3.7 amplifying crypto market swings
Earnings volatility makes timing impossible, alternating between 240% beats and 87% misses in recent quarters
Options holders face magnified losses as extreme volatility crushes time value

Robinhood Thrives While Coinbase Struggles

The contrast with Robinhood (NASDAQ:HOOD) is striking. Robinhood shares have surged 90% over the past six months and 270% in 2025, benefiting from diversification into event contracts, options trading, and financial services that reduce reliance on crypto volatility. While both platforms saw strong Q3 results, Robinhood’s broader revenue base has insulated it from Bitcoin’s weakness.

Wall Street analysts maintain an average price target of $382 for Coinbase with 18 buy ratings versus just 2 sells, suggesting professional investors see value. But with Bitcoin trading below $91,000 after Wednesday’s Fed-driven selloff and Reddit sentiment at multi-week lows, retail traders remain unconvinced that Coinbase can break free from crypto’s gravitational pull.

About the Author Michael Williams →

I am a long time investor and student of business, and believe finding good companies that can become great investments is the best game on earth. After 20 years of writing and researching the public markets it is clear that individuals have never had more tools and information to take control of their financial lives. From ETFs and $0 commissions to cryptos and prediction markets there has never been a greater democratization of access to investing.

I write to help people understand the investments available to them so they can make the best choice for their portfolio, whether they're starting out or looking for income in retirement.