Crypto Comeback Or Value Trap? What Investors Need To Know About Coinbase In 2025

Coinbase (COIN) is the go-to platform for buying, selling, and holding crypto in the U.S.
It’s basically the “bank” of crypto—minus the free lollipops.

They were the first major crypto exchange to go public, and even though the crypto market has had its fair share of drama lately (hi, regulation 👋), Coinbase is still standing.

But the real question is…

Should you buy it? Hold it? Or run for the hills?

That’s where the IDDA Analysis comes in.

At Invest Diva, we don’t do guessing games. We use a 5-step system to see whether an asset actually fits your financial goals. In this blog, we’ll break down:

• Fundamentals – Is Coinbase making money? What are they up to?
• Sentiment – How does Wall Street feel about Coinbase right now?
• Technical levels – What’s the price saying, and where could it go next?

Let’s dive into the IDDA analysis to assess Coinbase’s fundamental, sentimental, and technical outlook for 2025.

IDDA POINT 1&2 – CAPITAL & INTENTIONAL 

The capital and intentional analysis need to be conducted by you.

Select your assets in alignment with your financial goals. Listen to your intuition about each asset, but remember to invest based on your own values, not just because of recommendations from others.

Don’t know your risk tolerance? Get Kiana Danial’s risk management toolkit for free here.

IDDA POINT 3 – FUNDAMENTAL

Coinbase is making moves—and making headlines.

Here’s what’s going on in 2025:

They’re launching a Bitcoin Yield Fund

Starting May 1, Coinbase is rolling out the Coinbase Bitcoin Yield Fund (CBYF) for non-U.S. institutional investors.
It targets 4%–8% annual returns, aiming to attract more conservative players who want passive income from crypto.
Smart? Yes. Safe? That depends on how Bitcoin behaves. 😬

They just teamed up with PayPal

Coinbase is now waiving fees on transactions using PayPal’s stablecoin, PYUSD.
Why? To make crypto payments easier and boost stablecoin adoption.
Translation: Coinbase wants to stay ahead in the payments game.

Big expansion plans in the U.S.

Despite all the legal drama, Coinbase is hiring 130+ people in Charlotte.
That’s a bold move while others are shrinking. It shows confidence in their long-term game.

SEC Lawsuit? Dismissed.

Remember when the SEC accused Coinbase of being an “unregistered exchange”?
That lawsuit has been dropped.
One less thing for investors to worry about (for now).

They’re Holding the Keys to Billions

Coinbase is the main custodian for 9 out of 11 approved U.S. spot Bitcoin ETFs.
Yes, including the big boys: BlackRock, Fidelity, and Ark Invest.
That means institutional money is flowing into Coinbase—not just through trades, but through assets held under custody.
It’s boring backend stuff… but it’s powerful. And it adds trust, fees, and long-term stickiness. ✅

The Numbers

• Coinbase stock is up ~20% in April 2025, rebounding after a rocky start to the year
• But year-to-date, it’s still down about 20%
• Earnings for Q1 2025 come out on May 8, and Wall Street expects a 30% jump in revenue, hitting $2.14B

Industry Trends

• Institutional crypto adoption is rising again
• Regulation is still the elephant in the room 🐘
• Coinbase is trying to be the “grown-up” in crypto—regulated, public, and playing by the rules (mostly)

Coinbase is a solid company. They’re trusted by institutions, lead in crypto custody, and are expanding smartly.

IDDA POINT 4 – SENTIMENTAL

Bullish Sentiment

• The SEC lawsuit is gone = major sigh of relief 
• Big players still trust Coinbase — it holds custody for most U.S. Bitcoin ETFs
• CEO Brian Armstrong is calm and confident, saying Coinbase welcomes competition and wants to lead institutional crypto adoption
• New products (like the Bitcoin Yield Fund) show they’re thinking long-term
• If crypto rallies again, Coinbase is ready to ride the wave 

Bearish Sentiment

• Some investors still feel burned by crypto’s past drama
• Coinbase recently opposed a pro-crypto bill, which confused a few fans
• There’s lingering fear around U.S. regulation suddenly shifting again
• And let’s be honest: the stock is still down nearly 20% YTD, so the mood isn’t all sunshine

Emotions are running mixed. There’s cautious optimism… but also flashbacks of 2022. If Bitcoin pumps, investors will cheer. If regulation tightens, fear kicks in again.

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IDDA POINT 5 – TECHNICAL

After the broad market pullback, COIN is bouncing back quickly.

The candles are currently trying to break above the Ichimoku Cloud.

The conversion line (Tenkan) is still below the base line (Kijun), so the chart isn’t fully bullish yet.

RSI is in neutral territory, meaning there’s still room for movement in either direction.

Potential Buy Limit (BL) Ideas:

$194.96

$176.78

$164.85

Here are the Invest Diva ‘Confidence Compass’ questions to ask yourself before buying at each level:

1. If I buy at this price and the price drops by another 50%, how would I feel? Would I panic, or would I buy more to dollar-cost average at lower prices? (hint: this question also reveals your CONFIDENCE in the asset you’re planning to invest in).
   
2. If I don’t buy at this price and the stock suddenly turns around and starts going up again, will I beat myself up for not having bought at this level?
   

Remember: Investing is personal, and what is right for me might not be right for you. Always do your own due diligence. You should ONLY invest based on your own risk tolerance and your timeframe for reaching your portfolio goals

Momentum is improving, but the breakout isn’t confirmed yet.

If price gets rejected at the cloud, we could see another pullback.

SUMMARY: FINAL THOUGHTS

Coinbase remains one of the most trusted and strategic players in crypto.
They hold custody for the majority of U.S. Bitcoin ETFs, are expanding into institutional yield products, and just teamed up with PayPal to boost stablecoin adoption.

Fundamentally, they’re in solid shape. Revenue still comes mainly from trading activity—normal for an exchange—but they’re actively expanding into new income streams that could smooth out earnings over time.

Sentiment is cautiously bullish. The SEC lawsuit is behind them, and their CEO is leaning into institutional adoption. But regulatory unpredictability and mixed public perception still create emotional swings in investor confidence.

Technically, COIN is recovering fast after the market pullback. It’s testing the Ichimoku Cloud but hasn’t confirmed a breakout yet. RSI is neutral, and buyers are watching closely.

This stock will move with crypto sentiment—so expect swings. But long-term? Coinbase is one of the strongest horses in the race.

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If you enjoyed my blog post about Coinbase, you’ll love my post on Broadcom in the Crossfire: Should Investors Worry About Tariffs and Supply Chain Risks?

Disclosure: I am not a financial advisor, and this is not financial advice. This information is for educational purposes only. This post Crypto Comeback or Value Trap? What Investors Need to Know About Coinbase in 2025 may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please see the terms of service page for more information.