Analyst Warns of Major Drops for MSTR, COIN Stocks Amid Broader Market Pressures

An analyst predicts that Coinbase (NASDAQ: COIN) and Strategy (NASDAQ: MSTR) stocks will experience significant drops due to broken narratives.

The analysis comes as COIN's price has dropped by 56% from its all-time high of $445, while MSTR has fallen by 80% from its ATH of $543 seen in November 2024.

The analyst believes that Strategy's recent sale of 3,588 BTC between June 29 and July 3 undermines the 'never sell' narrative that sustained gains for the company. This could deter investors who bought MSTR to gain indirect exposure to Bitcoin.

COIN stock is also under pressure from Robinhood after the latter launched its own blockchain on July 1, offering a broader range of services including stocks, crypto, prediction markets, and DeFi. This expansion has eroded Coinbase's competitive edge in the market.