Coinbase Misses Q4 Earnings as Ethereum Seeks V-Shaped Recovery

Coinbase Misses Q4 Earnings Amid Crypto Market Downturn

Coinbase, one of the leading cryptocurrency exchanges, reported a net loss of $667 million in the fourth quarter of 2025, breaking an eight-quarter streak of profitability. The company’s Q4 earnings, released on Thursday, showed an earnings per share (EPS) of 66 cents, falling short of analyst expectations of 92 cents by 26 cents.

The company’s net revenue declined by 21.5% year-on-year to $1.78 billion, missing the expected $1.85 billion. Transaction-related revenue dropped nearly 37% to $982.7 million, while subscription and services revenue increased by more than 13% to $727.4 million. This mixed performance highlights the challenges faced by the crypto industry as market conditions remain volatile.

Ethereum Developers Propose ZK Tech for AI Anonymity

Ethereum Foundation AI lead Davide Crapis and Ethereum co-founder Vitalik Buterin have proposed using zero-knowledge proofs and other methods to ensure privacy in users’ interactions with large language models. They argue that API calls, which occur every time a user sends a message to a software application like an AI chatbot, need to be secure and private.

The duo emphasized the need for a system where users can deposit funds once and make thousands of API calls anonymously, securely, and efficiently. Providers must be guaranteed payment and protection against spam, while users must be assured that their requests cannot be linked to their identity or each other.

Binance Employee Targeted in France Break-In

Three suspects were arrested in France after a break-in targeting the home of a senior figure at Binance’s French unit. The company confirmed that one of its employees was the victim of a home invasion. Local outlet RTL reported that three hooded individuals carrying weapons attempted to enter an apartment in Val-de-Marne around 7:00 am CET on Thursday.

According to RTL, the suspects first forced their way into another resident’s apartment, demanding they direct them to the home of the head of Binance France. They searched the apartment and stole two mobile phones before fleeing.

X Money Beta Launch Scheduled for Next Two Months

X Money, an upcoming payments system part of Elon Musk’s everything app plans, is set to launch as a limited beta in the next two months before being rolled out to X users worldwide. Musk announced the new timeline during his AI company’s All Hands presentation on Wednesday, noting that X Money is already live in closed beta within the company.

Musk described X Money as “the place where all money is,” calling it a game changer. The feature is framed as a key component to making X more essential, tied to its everything app vision, with payments serving as a core driver of daily engagement.

Bitcoin ETFs Face Outflows as Analysts Cut Targets

US spot Bitcoin exchange-traded funds (ETFs) saw significant selling on Thursday, with outflows accelerating after Standard Chartered lowered its 2026 Bitcoin forecast. According to SoSoValue data, spot Bitcoin ETFs recorded $410.4 million in outflows, extending weekly losses to $375.1 million.

Unless Friday brings substantial inflows, the funds are on track for a fourth consecutive week of losses, with assets under management (AUM) nearing $80 billion, down from a peak of almost $170 billion in October 2025.

Ether Expected for V-Shaped Recovery, Says Tom Lee

Fundstrat head of research Tom Lee predicts a quick rebound for Ether following recent declines. He noted that since 2018, Ethereum has experienced eight such recoveries, with each time bouncing back rapidly.

“Eight out of eight times, Ethereum has had a V-shaped bottom. So it has recovered 100% of the time within almost the same speed that it fell,” Lee said at a conference in Hong Kong on Wednesday.

Weekly Crypto Performance

At the end of the week, Bitcoin (BTC) was trading at $70,124, Ether (ETH) at $2,061, and XRP at $1.58. The total market cap stood at $2.41 trillion, according to CoinMarketCap.

Among the top 100 cryptocurrencies, the biggest altcoin gainers of the week were Pippin (PIPPIN) at 263.93%, Humanity Protocol (H) at 76.29%, and Kite (KITE) at 43.34%. The top losers included MYX Finance (MYX) at 70.47%, MemeCore (M) at 17.45%, and Aptos (APT) at 11.25%.

Memorable Quotes from Industry Leaders

Scott Bessant, United States Treasury Secretary: “In a time when we are having one of these historically volatile sell-offs, I think some clarity on the CLARITY bill would give great comfort to the market, and we could move forward from there.”
Tom Lee, Fundstrat head of research: “But eight out of eight times, Ethereum has had a V-shaped bottom. So it has recovered 100% of the time within almost the same speed that it fell.”
Stephen Lynch, US Massachusetts Democrat: “This is hurting the crypto industry, all these scams. Look at crypto today. I think it’s down 25% in the last month. People are losing trust, and it’s not good for crypto. It’s certainly not good for consumers, and it’s awful the reputational damage that the SEC is suffering.”
Sam Bankman-Fried, FTX co-founder: “New evidence shows that Biden’s DOJ threatened multiple witnesses into silence or into changing their testimony. My conviction should be thrown out.”
Miguel Morel, Arkham CEO: “Centralized incumbents have become bloated and unresponsive to user needs, becoming worse than the traditional financial systems they pretend to improve on.”
Mike Novogratz, Galaxy Digital CEO: “Retail people don’t get into crypto because they want to make 11% annualized.”

Top FUD of the Week

Crypto CEO Sentenced for $200M Bitcoin Ponzi Scheme: A US federal judge in Virginia sentenced the chief executive of Praetorian Group International to 20 years in prison for running a $200 million cryptocurrency investment scheme that defrauded tens of thousands of investors.
Crypto Use in Human Trafficking Networks Surged in 2025: Chainalysis reported that crypto flows to suspected human trafficking networks increased by 85% year-over-year in 2025, with blockchain transparency potentially helping disrupt operations.
Israel Arrests Two Over Polymarket Trades on Military Operations: Israeli authorities arrested and indicted two individuals for allegedly using secret information to place bets on the predictions market Polymarket related to Israel striking Iran.