How did Coinbase avoid the latest cryptocurrency crash?
Coinbase managed to avoid a major sell-off this week, after famed bitcoin bull Cathie Wood's firm Ark Investment bought over 200,000 COIN shares on Monday and Tuesday.
- Coinbase Global Inc (NASDAQ: COIN) shares are up by nearly 5% this week, as of Thursday (22 July 2021)
- The crypto exchange has been able to stay unharmed by the latest cryptocurrency crash, which took down bitcoin by over 7%
- Ark Investment, a famed bitcoin supporter, bough over 200,000 COIN shares at the start of the week
- Despite being down 30% since its IPO in April, analysts still foresee a 67% upside potential on Coinbase
- Interested to trade Coinbase shares? Open an account with us today to get started.
Coinbase stock price: what’s the latest?
Coinbase found itself relatively unscathed in the latest cryptocurrency rout, as shares remained flat this week.
At one point, the crypto exchange’s stocks were even up as much as 10% to a high of US$235.64 a share.
One possible reason for this could be that Ark Investment bought over 200,000 COIN shares on Monday and Tuesday this week, founder Cathie Wood, a prolific supporter of bitcoin, revealed.
Nevertheless, the counter has fallen by 30% since its initial public offering in April this year, with the cryptocurrency market experiencing massive sell-offs.
Across the board, COIN currently has a consensus rating of ‘buy’ from 11 analysts and a price target of US$379, based on the latest data published by MarketBeat.
The price target represents a 67.6% upside potential from the stock’s last traded price of US$226 on Thursday (23 July 2021).
Earlier this month, Oppenheimer analyst Owen Lau raised his firm’s price target on the cryptocurrency exchange to US$444 from US$434 previously, while keeping an ‘outperform’ call.
Lau’s bullish call was based on the opinion that COIN is likely to repeat Q1’s strong performance in its Q2 report, which is scheduled to be released on 12 August.
What happened to bitcoin this week?
Between Monday and Tuesday this week, BTC crashed by over 7%, mirroring a massive decline in global stock markets. The Dow Jones Industrial Average recorded its worst day since October 2020.
According to Annabelle Huang, partner at Amber Group, ‘concerns’ about the ‘quality and strength’ of the global economic recovery has led to risk assets across the board turning weaker.
‘Coupled with recent BTC weakness, this just sent crypto market down further,’ she was quoted as saying on CNBC.
Crypto’s fall also followed reports of the New Jersey Attorney General issuing a Cease and Desist Order against New Jersey-based crypto firm BlockFi, ordering it to stop offering interest-bearing accounts.
Bitcoin also continues to be weighed down by China’s ongoing crackdown on cryptocurrency trading, which led to over 90% of bitcoin mines in the country being shut down last month.
The world’s largest cryptocurrency was then able to claw back 10% of those losses on Wednesday. Many analysts, however, warned that this recovery could be short-lived.
What’s your view on Coinbase? Take a long or short position today.
* Based on the Investment Trends 2018 Singapore CFD & FX Report based on a survey of over 4,500 traders and investors. Awarded the Best Online Trading Platform by Influential Brands in 2020. Awarded the best retail FX provider for Asia by FX Markets in 2020
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.