COIN is presently trading at $119 after closing at $115 on November 27, which is the highest close since May 2022. The price now has minimal resistance ahead as it is moving toward $130, the May 2022 high.
Major cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) has seen its stock price climb over 250% so far this year. This brings the company close to its valuation from before the massive crypto crash of 2022.
Last year’s cryptocurrency decline started with the implosion of TerraUSD, a so-called “stablecoin” whose value was algorithmically pegged to the US dollar. TerraUSD lost its peg, causing it to plummet in value and create a domino effect across the crypto markets. Major coins like Bitcoin and Ether saw huge drops, with Bitcoin falling below $20,000 at one point. This also affected many crypto companies, and the further effects of the FTX crash also made many of them file for bankruptcy. Most of the remaining companies had a major dip in price value, with even an industry leader like Coinbase not left out.
The Rise of COIN Shares Value
COIN is presently trading at $119 after closing at $115 on November 27, which is the highest close since May 2022. The price now has minimal resistance ahead as it moves toward $130, the May 2022 high. This upward move is part of a larger uptrend that started at the end of October when the price reached a bottom at $70. Since then, the company’s stock price has shown no signs of declining, increasing over 50% within a month.
Major Drivers of the Coinbase (COIN) Stock Rebound
Coinbase (COIN) stock rebound comes alongside this broader crypto revival. The company’s valuation sank as crypto struggled, so it makes sense that the exchange is thriving again now that the market is bouncing back. Many cryptocurrencies have shown signs of recovery, with Bitcoin now trading above $36,000 after breaking above $31,000, which has kept the price from going higher since the middle of the year. Ethereum now trades above $2,000, and many other altcoins have also made some upward moves in the last few weeks.
Another major driver of Coinbase’s stock price rise is its embrace by institutional crypto investors. Major financial giants like BlackRock and Fidelity have chosen Coinbase as their partner for upcoming crypto exchange-traded funds (ETFs). These ETFs will give traditional investors exposure to crypto without having to directly own digital assets.
By serving as the custodian and gateway for these Wall Street institutions venturing into crypto, Coinbase cements itself as the bridge between mainstream finance and the world of cryptocurrency. The confidence that these major financial establishments have in the crypto company also validates it as a secure and compliant platform that can assist in spreading wider crypto adoption. This is also automatically expected to bring a lot of money into the company’s stocks.
This continued growth for Coinbase is also coming at a time when Binance and its former CEO are facing serious legal battles from major regulators, especially in the United States. This could be said to testify to the fact that the ongoing case is not having much negative effects on investor belief concerning the future of crypto services and companies.
Amid the stock growth and the interest from traditional investors, Coinbase still faces challenges like its ongoing lawsuit over token listings brought by the SEC. However, its partnerships with top investment managers, its key roles in the crypto industry, and its brand reputation put Coinbase in a strong leadership spot as crypto inches toward mainstream viability. If crypto’s recovery continues, expect Coinbase’s stock to keep making gains.
Subscribe to our telegram channel.
Join
