Analysts cite increased trading volume, the recent approval of spot bitcoin ETFs, and a potential victory in the company’s lawsuit against the SEC as the primary reasons for the upgrade.
Coinbase’s (COIN) shares saw an increase of up to 6% on Friday following an upgrade from investment bank Oppenheimer. The firm changed the stock’s rating to “outperform” from “perform” and set a price target of $160 per share. The upgrade was based on the belief that Coinbase is resilient and its management team is exceptionally strong.
CryptoCaster Quick Check:
During the challenging period of ‘crypto winter’, when the stock faced intense scrutiny and many similar companies struggled, Coinbase remained resilient. Analysts have noted, “COIN stood its ground, actively defending its business and the broader industry. We are of the opinion that the company’s strength and the tenacity of its management team are underappreciated by many.”
The upgrade is based on a number of factors, including a “good chance” that Coinbase will prevail in its lawsuit against the Securities and Exchange Commission (SEC) or that the court will dismiss the case.
Another motivating factor is the recent approval of ten spot bitcoin exchange-traded funds (ETFs), for which Coinbase acts as custodian for several issuers. This will not only generate revenue for the company as a key component of the infrastructure, but will also benefit from a new wave of investors, increased adoption, and higher trading volume, according to Bir.
The upgrade comes after JPMorgan downgraded the stock to underweight earlier this week, citing a disappointing bitcoin ETF catalyst.
With current low trading fees for ETFs – some at 0% for the first six months or until the fund reaches a certain amount of assets – investors trading on crypto exchanges may be swayed to invest in ETFs rather than platforms like Coinbase, but Lau does not see this happening. Instead, he believes that the vast majority of retail traders will keep their funds on the exchange because it allows them to participate in other blockchain use cases.
Bir also noted Coinbase’s increased trading volume since the beginning of the year, and predicts that volume will continue to rise over the next two years as the Federal Reserve looks to cut interest rates this year and the industry prepares for the bitcoin halving in April. According to Bir, trading volume could increase by up to 66% year over year.
Coinbase’s stock increased more than 400% last year, fueled by a broader crypto market recovery following a turbulent 2022. The stock has fallen more than 20% this year, underperforming the overall crypto market. The CoinDesk 20 index, which tracks the 20 largest cryptocurrency assets, is down roughly 11% year to date.
We hope you appreciated this article. Before you move on, I was hoping you would consider taking the step of supporting CryptoCaster’s journalism.
From Elon Musk, Larry Fink(BlackRock) to Jamie Dimon(JP Morgan Chase) a number of billionaire owners have a powerful hold on so much of the hidden agendas’ which eludes the public concerning the paradigm shift juxtaposed by cryptocurrency and web3 emerging technologies. CryptoCaster is different. We have no billionaire owner or shareholders to consider. Our journalistic efforts are produced to serve the public interest in crypto development and institutional disruptions – not profit motives.
And we avoid the trap that befalls much U.S. and global media – the tendency, born of a desire to please all sides, to engage in false equivalence in the name of neutrality and retail consumer protection. While fairness and transparency dictates everything we do, we know there is a right and a wrong position in the fight against fiat global banking interest and monetary reconstruction precipitated by the emerging crypto ecology.
When we report on issues like the FTX, Binance and Ripple crisis, we’re not afraid to name who or what is uncovered. And as a crypto sentinel, we’re able to provide a fresh, outsider perspective on the global monetary disruption – one so often missing from the insular American and European media bubble.
Around the world, readers can access the CryptoCaster’s paywall-free journalism because of our unique reader-supported model. That’s because of people like you. Our readers keep us independent, beholden to no outside influence and accessible to everyone – whether they can afford to pay for news and information, or not.
We thankyou for the on-going support our readers have bestowed monetarily. If you have not considered supporting CryptoCaster, if you can, please consider supporting us just once from $1 or more of Bitcoin (satoshi) or Eth, and better yet, support us every month with a little more. Scroll further down this page to obtain CryptoCaster’s wallet addresses.
Please Read Essential Disclaimer Information Here.
© 2022-2023 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.
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt