why is coinbase stock going up

Shares of cryptocurrency exchange Coinbase Global (NASDAQ: COIN) were rising on Monday. As of 11:20 a.m. EDT, the stock was up over 5%. And this is because popular cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum

(CRYPTO: ETH) were rising over the weekend.

Full Answer

Why to invest in Coinbase?

They are the biggest player in the crypto game because they make trading radically simple. Creating a Coinbase account and linking it to your bank account takes just a few minutes. From there, this simple and intuitive platform will walk you through making your first trades, managing your portfolio, setting up automatic recurring buys, and more.

Why does Coinbase always go down?

Research Shows Coinbase Tends to Go Down After a $500 Bitcoin Price Moves. The popular cryptocurrency exchange Coinbase continues to cause upset across the crypto community due to the platform going offline or experiencing technical difficulties during each Bitcoin crash. Research shows that each time Bitcoin price moves $500 or more, Coinbase ...

When to buy Coinbase?

Own Bitcoin in just a few minutes

• Create an account Get started is fast, secure, and designed to keep your personal info safe.
• Verify your identity To prevent identity theft or fraud, you’ll need a photo ID to make sure it’s really you.
• Buy Bitcoin Get started with as little as $25, and you can pay with a debit card or bank account.

When is Coinbase going public?

On April 14, Coinbase, a cryptocurrency exchange located in San Francisco, will go public. With an initial capitalization of US$100 billion (£73 billion), the business will trade under the symbol COIN and list 114,850,769 shares on the NASDAQ.

Why is Coinbase stock so cheap?

The reason it trades at such a cheap valuation is because the market believes cryptocurrency trading volume is going to go down and the company's gravy train will therefore grind to a halt.

Is there a reason to think so about Bitcoin?

Could we see more big-money players getting into Bitcoin and other cryptocurrencies in time, making more large purchases like what we saw last week? Yes, there's reason to think so. For example, billionaire investor Bill Miller, chief investment officer for Miller Value Partners, recently said that he believes in Bitcoin today like he believed in Amazon.com after the dot-com bubble popped.

What stocks have been affected by the Bitcoin crash?

The crash in cryptocurrencies has impacted several stocks as well. The stocks include companies like MicroStrategy, which has bought 105,085 Bitcoins. Bitcoin mining companies have tumbled and followed cryptocurrencies lower. Coinbase (COIN) stock has also plummeted. Will COIN stock go up or is the worst yet to come for the cryptocurrency exchange?

What is coin stock?

COIN stock is among the top 25 discussion topics on Reddit group WallStreetBets. Reddit traders have been instrumental in pumping up several stocks, especially GameStop and AMC Entertainment. Both of the stocks trade way above what Wall Street analysts think they are worth.

Is the coin stock bullish?

Analysts have a bullish prediction for COIN stock. While COIN stock has been falling, most Wall Street analysts are bullish on the stock. Among the 17 analysts covering the stock, 14 have rated it as a buy or some equivalent. Four analysts have a hold rating, while one analyst has a sell rating.

Is Coinbase a good stock to buy?

Overall, if you are a crypto bull, COIN stock would be a good buy at these prices. The stock should go up after the crash in cryptocurrencies subsides.

Why is Coinbase stock falling?

Coming back to COIN stock, the stock has been falling because of the sell-off in growth names. Also, Coinbase went public at very aggressive valuations, which left little on the table for investors who bought the stock in the direct listing.

When did Coinbase go public?

Coinbase (COIN) went public in April through a direct listing at a reference price of $250. The stock went on to hit a high of $429.54. However, last week it fell to almost $250 before rebounding.

How much commission does Coinbase charge?

Meanwhile, Coinbase charges up to 4 percent commission for transactions on its platform.

How much is coin stock worth in 2022?

COIN stock is richly valued. Based on the 2022 consensus revenue estimates of $4.82 billion, it's valued at around 12x of the expected 2022 sales. The multiples are way above what other “mainstream” exchanges like Nasdaq trade at.

What is the target price of Coinbase?

Coinbase has a median target price of $450, which is a premium of 54 percent over the current prices. Its highest target price of $650 is 121 percent above current prices, while the lowest target price of $250 is a potential downside of 14.7 percent.

Is the Renaissance IPO ETF underperforming the S&P 500?

The Renaissance IPO ETF (IPO), which was red hot in 2020 amid the booming U.S. IPO market, is now down almost 13 percent for the year. It's underperforming the S&P 500 by a wide margin.

Is there upside to coin stock?

COIN stock could see some upside from here , especially as its earnings approach. However, given the long-term headwinds, I would be selling any rise in the stock. I would wait to buy COIN stock until it falls to around $250.

When will Coinbase go public?

Coinbase, the largest U.S. cryptocurrency exchange, is expected to go public on April 14, via a direct listing on the Nasdaq exchange with the ticker COIN. Although the proposed listing price isn’t known yet, investors expect that valuations could top $100 billion, given the strong interest in cryptocurrencies and the company’s stellar earnings for Q1 2021. In our interactive dashboard Coinbase Revenues: How Does COIN Make Money? we provide an overview of Coinbase’s business model and key revenue streams. Parts of the analysis are summarized below.

How does Coinbase work?

Coinbase’s platform enables retail and institutional customers to buy, sell, and store cryptocurrencies such as Bitcoin and Ethereum. The company primarily reaches customers via its Coinbase, Coinbase Pro, and Coinbase Wallet apps and its websites. Coinbase had a total of about 56 million retail users as of Q1 2021. Roughly 90% of the company’s revenues (as of 2020) came from the transaction fees from trading and via services such as storage and analytics. Coinbase charges its customers transaction fees (estimated at about 0.5%) based on the volumes that they trade, with larger trades seeing lower fees. The company’s commissions are higher than traditional exchanges, given the higher transaction costs for Bitcoin and other cryptos. About 10% of the company’s revenues come from sales of its own crypto assets to customers.

How much of Coinbase revenue is transaction revenue?

About 90% of Coinbase’s revenues come from transaction revenues, which are very sensitive to the pricing trend for cryptocurrencies (particularly for bellwether Bitcoin). This, in turn, influences the number of monthly transacting users on the platform and the total value of transactions. As Bitcoin prices roughly doubled over Q1, the company saw a quarterly trading volume surge to about $335 billion – that’s higher than the trading volumes for the full years 2019 and 2020 combined. Now, if prices decline, MTUs and transaction volumes on the platform will likely decline sharply, hurting Coinbase.

How is Bitcoin price affected?

Firstly, with Covid-19 vaccinations picking up in the U.S. and the economy opening up further, investors could be moving funds away from somewhat speculative cryptos to real economy assets.

How much does Coinbase charge for transactions?

Coinbase charges retail users a spread of about 0.50% for transactions, besides another fee of between 1.5% and 4% depending on how they fund their trades.

How much is Bitcoin trading volume in 2021?

The company had a stellar Q1 2021, with estimated Revenues growing to $1.8 billion, with trading volume for the quarter rising to $335 billion as the price of Bitcoin almost doubled year-to-date, causing the number of active monthly traders to surge from 2.8 million at the end of last year to 6.1 million in Q1.

Is Forbes opinion their own?

Opinions expressed by Forbes Contributors are their own.