Although it was never the only cryptocurrency exchange available for purchase or sale, Coinbase (NASDAQ:COIN) has maintained a notable position in the market for a while. It was just “Coinbase” and “everyone else” for the most part. Today, “everyone else” just grew significantly, and Coinbase suffered as a result. Because of the new player in the market, Coinbase shares are down more than 8% on Thursday afternoon.
Stay in the know on crypto by frequently visiting Crypto News Today
In fact, CME Group (NASDAQ:CME) intends to launch its own Bitcoin (BTC-USD) trading business in an effort to increase revenue from investors seeking to increase their exposure to cryptocurrency in managed funds. Given that CME Group is the biggest futures exchange platform available, Coinbase, which was keen to get a piece of the institutional Bitcoin market, may suffer a significant loss of potential business. When you add in the fact that CME Group can operate as a “regulated marketplace,” in many cases that’s all the major players will want to hear.
CryptoCaster Quick Check:
A Serious Catastrophe in Progress?
This poses a significant potential risk for Coinbase. Although it is unlikely to completely undermine Coinbase’s business, it will introduce a formidable new competitor that will be challenging for Coinbase to adapt to. Indeed, Coinbase’s recent string of successes has been impressive, enabling it to become a major lender.
According to reports, Coinbase had loans totaling approximately $800 million to significant traders at the end of March. This represents a more than four-fold increase from the previous year, when the amount was only $194 million. It’s a good guess that if CME Group gets involved, some of that traffic will move away from Coinbase unless Coinbase can provide strong arguments for staying. Meanwhile, recent service interruptions won’t be helpful there.
Is Coinbase a Good Investment at This Time?
Now let’s turn our attention to Wall Street. Based on nine Buys, nine Holds, and three Sells assigned over the last three months, analysts have a Moderate Buy consensus rating on COIN stock, as shown in the graphic below. An upside potential of 21.26% is implied by the average COIN price target of $244.37 per share, following a 228.9% surge in share price over the previous year.
W
e hope you enjoyed this article. Before you move on, we invite you to consider supporting CryptoCaster’s journalism.
Billionaire owners like Elon Musk, Larry Fink (BlackRock), and Jamie Dimon (JP Morgan Chase) often have a strong influence on the hidden agendas surrounding the paradigm shift brought about by cryptocurrency and emerging Web3 technologies. CryptoCaster stands apart. We have no billionaire owner or shareholders to please. Our journalism is dedicated to serving the public interest in crypto development and institutional disruptions, not profit motives.
We avoid the pitfall of much U.S. and global media, which often resorts to false equivalence in the name of neutrality and retail consumer protection. While fairness and transparency guide everything we do, we recognize that there is a right and wrong stance in the fight against fiat global banking interests and the monetary reconstruction driven by the emerging crypto ecology.
When we report on issues like the FTX, Binance, and Ripple crises, we’re not afraid to name names and uncover the truth. As a crypto sentinel, we offer a fresh, outsider perspective on global monetary disruption—something often missing from the insular American and European media bubble.
CryptoCaster’s paywall-free journalism is accessible worldwide thanks to our unique reader-supported model. This is made possible by readers like you. Your support keeps us independent, free from outside influence, and accessible to everyone, regardless of their ability to pay for news and information.
We are grateful for the ongoing monetary support from our readers. If you haven’t yet considered supporting CryptoCaster, please consider contributing just once from $1 or more in Bitcoin (satoshi) or Ether, or even better, support us monthly with a bit more. Scroll further down this page to find CryptoCaster’s wallet addresses.
Thank you.
Kristin Steinbeck
Editor, CryptoCaster
Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.
Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
SOL – DLvdMu85dW6pZMhw2E4S3pp81qQQGpy5UcdTsFEFBu4b
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt
CRYPTOCASTER HEATMAP
