Coinbase (COIN) Rises 15%, Will Other Crypto Stocks Follow?
Shares of Coinbase Global Inc, one of the few publicly traded crypto trading platforms, ended Monday’s trading session with a massive growth of 15.06%, pushing its price to $38.27. The move is the biggest move for the company’s shares, which have recorded more than an 83% slump over the past 12 months.
The impressive opener to the trading week was fueled by an unprecedented surge in the price of Bitcoin (BTC) and the broader cryptocurrency ecosystem. While the ongoing price run seems to be cooling off, Bitcoin is still up 0.79% to $17,196.45, and the combined crypto market cap remains pegged at $849.19 billion, atop 0.4% growth.
Coinbase’s business is largely dependent on sentiment surrounding the cryptocurrency ecosystem at any given time. When the market is seeing positive momentum and growth, chances are that Coinbase is bound to see more patronage, and vice versa.
In the current run in the exchange’s stock price, it recorded a massive daily trading volume of $1.93 billion, up 39% over the past 24 hours. This confirms the correlation between the stock price’s performance and trading activities.
Outlook for other crypto stocks
The run in Coinbase stock comes as part of a general trend for most crypto stocks and companies with deep exposure to Bitcoin.
Business intelligence and software firm MicroStrategy Inc also ended Monday’s session with a positive close, surging 9.07% to $175.01. Bankrupt crypto miner Core Scientific also rallied 22.86% to $0.086.
With the current growth generally coming off as impressive, analysts are still bearish on Coinbase stock, considering the fact that the underlying gloom in the broader industry is not near being cleared yet. Despite its latest settlement with the U.S. SEC, Goldman Sachs analysts said in a note to clients that they see limited catalysts for the overperformance of the stock in 2023.
