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COIN Stock 0.85% Down, Analysts Get Bullish on Coinbase Following Huge Correlation with Crypto Assets

UTC by Steve Muchoki · 3 min read
COIN Stock 0.85% Down, Analysts Get Bullish on Coinbase Following Huge Correlation with Crypto Assets
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Coinbase stock has gained approximately 38%, 41%, and 6% in the past three months, one month, and five days respectively.

Coinbase Global Inc (NASDAQ: COIN) stock closed Monday trading at $325.54, up 8.21%. The gains extended during today’s premarket, as COIN stock was trading at around $330.26, up approximately 1.47%. As the market opened today, the stock is 0.85% down. Following the recent crypto hype that has seen Bitcoin set a new ATH, Citi analysts are very bullish with Coinbase stock.

According to Citi analyst Peter, the company is well-positioned to rally in the coming quarters following global crypto adoption. Moreover, countries led by El Salvador, China, Nigeria have significantly adopted the crypto asset market.

“For its position within the crypto value chain, a `networking-based business model and strategy, the undeniably very large opportunity set … yes, we believe COIN is investable,” Christiansen wrote in a recent report to investors. Investors should “buy crypto’s general store.”

Notably, as a leading crypto asset exchange, the firm is largely correlated with the general market value. Mid-August, CEO Brian Armstrong highlighted that the company will invest in crypto assets as long as the industry keeps on growing.

“We recently received board approval to purchase over $500M of crypto on our balance sheet to add to our existing holdings. And we’ll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over time as the crypto-economy matures,” Armstrong said.

After going public in mid-April, COIN stock significantly dropped in value. Notably, COIN stock debuted at $380 and dropped to trade around $217 in the past few months, until the recent breakout to trade above $320.

According to metrics provided by TradingView, Coinbase (COIN) stock found a strong support level in the past few months. With the crypto market getting attention from different global governments, COIN stock continues to gain value.

Coinbase (COIN) Stock and the Market Outlook

Coinbase ranked the second position after Binance on merits of daily traded volume according to market analytics provided by CoinGecko. As of October 26, 2021, Coinbase reported a 24-hour traded volume of $5.529 billion. For perspective matters, Binance on the other hand has a 24-hour volume of $26.38 billion.

Although the firm is a globally recognized institution, most of its clients come from the United States. Having over 50 digital assets led by Bitcoin and Ethereum, the exchange has grown to a valuation of $68.67 billion.

Wedbush analyst Dan Ives wrote in a note to clients. “Coinbase is a foundational piece of the crypto ecosystem and is a barometer for the growing mainstream adoption of Bitcoin and crypto for the coming years.”

Coinbase stock has gained approximately 38%, 41%, and 6% in the past three months, one month, and five days respectively through Monday.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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