Coinbase Stock Is Surging on Bitcoin Boom—New All-Time High Incoming?

Coinbase’s ( COIN ) stock price surged to more than$ 330—a three-year-high—earlier this week amid a broader cryptocurrency and stock market boom fueled by President-elect Donald Trump’s re-election. &nbsp,

The dizzying rally, which peaked on Monday, likewise catapulted MicroStrategy’s ( MSTR ) stock to a record-high$ 351 per share, while Bitcoin topped out above$ 93, 000, beating its previous pre-election peak by nearly$ 20, 000. Meanwhile, COIN shares swelled to$ 334—not far off from the stock’s all-time high price of$ 357 set in 2021.

The record-smashing year for digital goods and crypto-related shares has raised a critical issue for Coinbase’s owners: Will COIN stock rally to a new all-time great?

Although it’s still too early to speculate, experts told that a new top value for COIN is undoubtedly a prospect amid the surge in crypto markets and optimism surrounding nicer U.S. regulation. In addition, Wall Street analysts predict that COIN shares may be significantly below their all-time highs in the upcoming year.

COIN’s average price target rests at$ 250.31 over a 12-month horizon, with a high forecast of$ 400 and a low forecast of$ 165, according to stock market research platform TipRanks. COIN investment has been rated a purchase by nine analysts, and eight have given investors advice on the company’s stock. Selling COIN is only suggested by one business expert.

The company’s stock is trading at$ 293 at the time of writing, up 49 % over the last month.

Unfortunately, COIN’s ability to reach its anticipated price target is dependent upon a host of aspects, two analysts told . According to them, the top issue is whether President-elect Trump may meet his campaign promises to flame Gary Gensler and to impose restrictions on Bitcoin mining activities in the United States, they said.

In the face of fierce competition for market share from competing trading systems, the company’s ability to maintain a firm grasp on the U.S. market will also determine its ability to grow. &nbsp,

According to Piper Sandler VP and Senior Research Analyst Patrick Moley,” I think the change in attitude in DC may allow that to happen,”” Coinbase CEO] Brian Armstrong has stated that he’s committed to their U.S. activities.”

After Trump’s election, analysts are now beginning to see signs that the bull might run for Coinbase. &nbsp,

Coinbase’s exchange trading volume has surged nearly 400 % to roughly$ 11 billion in the 10 days following Trump’s re-election, CoinGecko data shows. The peak signals that a financial bitcoin trading boom could be live, according to analysts.

The increased business activity may, in turn, bring in big money for Coinbase, whose buying fees account for the majority of its earnings, Oppenheimer &amp, Co. Senior Analyst Owen Lau told . And some of that speed may be fueled by the possibility of kinder crypto asset legislation.

Over the past few days, trading volumes increased significantly, and one of it was caused by these [altcoin ] trades that people did n’t have the guts to touch because they were concerned that SEC might pursue them, Lau said. ” What you see when we have this kind of pro-crypto environment…]is that ] people are more willing to bet on all kinds of]tokens ]” .&nbsp,

But while an increase in U. S. retail traders ‘ appetite for volatile cryptocurrencies is, on the face of things, a boon for Coinbase’s bottom line, those gains wo n’t be realized without challenges.

As more traders begin dabbling in bitcoin in the U. S., a host of competing exchanges may possibly attempt to move onto Coinbase’s home turf, possible cutting into the investing platform’s market share and profit, Moley told .

Coinbase’s market dominance has declined in recent months, as smaller crypto-native exchanges encroach upon its business, a September report from crypto research firm Kaiko shows. The trading platform’s market share slid to 41 % in September, down from roughly 54 % last March, the data shows.

In the wake of the most recent resurgence of the digital asset market, Coinbase is also in opposition to TradFI exchanges, which are also offering crypto. &nbsp,

Robinhood, which acquired Bitstamp last spring, is one such trading platform that is actively expanding its crypto services and could pose a threat to Coinbase, Moley said. In addition to staking for Solana and Ethereum, the stock and crypto platform’s website lists support for the trading of 19 tokens. &nbsp,

Despite this, Coinbase’s first-mover advantage over potential rivals could stifle TradFi competitors ‘ attempts to seize control of its market share in the United States.

As more regulatory clarity is brought into the market,” there will be other traditional finance players,” according to Moley. ” ]But ] newcomers have much less robust offerings than Coinbase”.

Ultimately, it’s still too early to tell the extent to which any potential shift in U. S. crypto policy and regulations will spur trading in the U. S., benefiting Coinbase’s bottom line, Lau told Decrypt. &nbsp,

It’s just difficult to quantify the potential immediate-term tangible or incremental revenue gain Coinbase will receive, Lau said. The question becomes,” Can it be sustainable next year,” but we see the volume in the near future.