Analyst Predicts Potential Growth for Coinbase Stocks
Date: 2023-12-02 Author: Dima Zakharov Categories: BUSINESS
Potential Growth in Coinbase Stocks
Peter Brandt has identified a technical analysis pattern on Coinbase stock charts—a reversed "head and shoulders." Noting the completion of this pattern, Brandt suggests further prospects for the asset's growth based on technical analysis indicators.
Coinbase made history as the first cryptocurrency exchange to achieve public status in the United States, initiating stock trading on Nasdaq through a direct listing in February 2021.
Fluctuating Stock Values
Starting at $430, Coinbase's stock dipped to $40 by May 2022. As of the latest review, the stock stands at $128.
Correlation with the Market
Coinbase's stock movements echo Bitcoin's trends, mirroring the flagship cryptocurrency's movements. For instance, amid Bitcoin's all-time high in November 2021, Coinbase's stocks also surged. Conversely, as the crypto winter arrived, Bitcoin's decline was mirrored by other coins and crypto-related stocks, including Coinbase's.
Market Comparison and Growth Prospects
Coinbase's stocks began showing positive dynamics in autumn 2023 amid the overall growth in digital asset markets. Anticipation of the approval of the first-ever U.S. spot Bitcoin ETF and the approaching Bitcoin halving in 2024 have been the primary drivers for the industry's growth cycle.
High correlation with Bitcoin suggests that if the positive trend in digital asset markets persists, Coinbase's stocks are likely to continue appreciating.
Regulatory Challenges and Developments
Despite positive prospects, Coinbase remains under scrutiny by the U.S. Securities and Exchange Commission (SEC). In June 2023, the regulator filed a lawsuit against the platform, accusing it of withholding information, operating without registration, and other violations. Coinbase's team, in turn, is advocating for transparent regulatory norms in the digital asset market.
Recent reports in late November 2023 suggest that American regulators have sought information from Coinbase, potentially to exert pressure on another crypto exchange, Bybit.
