- Bitcoin price fell by 7.5% over the weekend.
- Investors are still understanding new US crypto regulations released on Friday.
- COIN stock starts the week directly on top of the 21-day moving average.
Coinbase Global (COIN) stock opened on Monday down about 4.1% at $70.95. Despite Bitcoin making a rebound in the premarket by moving from $18,300 to $18,800, BTC lost about 7.5% from the closing of the equity market on Friday to the lowest price early on Monday.
Also read: Bitcoin price takes a small detour, but is $25,000 scenario still valid?
While COIN stock has opened the week sitting on top of the 21-day moving average, it appears likely that it will lose its support at $70 and drop back to $62 if the price of BTC continues to slide.
Coinbase stock news
Coinbase investors were thrown for a loop last week when the Biden administration released an executive order telling financial agencies to crack down on financial fraud and scams in the crypto space. The White House ordered the Securities & Exchange Commission (SEC) and the Commodity Futures Trading Comission (CFTC) to "aggressively pursue investigations and enforcement actions." Additionally, there is said to be ongoing chatter about further regulations for crypto exchanges that would directly affect Coinbase.
Pro-crypto lobbyists and much of the industry is pushing to have the CFTC become the main regulator for crypto. This would only happen, however, if crypto becomes uniformly labeled as commodities. The CFTC is perceived as having a less aggressive approach to regulation compared with Gary Gensler's crypto-skeptical SEC.
In other news, the CEO of Shopify, Tobi Lutke, has been buying up COIN stock. Between August 23 and September 13 his automated trading strategy bought a combined 21,130 shares of COIN. Lutke is on Coinbase's board. The purchases, four in total, amount to an outlay of $1.5 million. Lutke also bought about $750,000 worth of Coinbase stock earlier in August. It is estimated that he now owns approximately $3.9 million in COIN stock.
Coinbase stock forecast
COIN opened right on the 21-day moving average, which is around $71.45 currently. Now that Coinbase stock is trending below here, around $70.50, it appears further weakness is ahead. This is a shame for bulls since the 9-day moving average only recently made the jump above the 21-day moving average. Now it will likely fall back to its bearish persuasion.
Mid-term support is at $62, and this is where your author thinks COIN will head next. A consolidation is normally in order when Bitcoin suffers a surprise weekend sell-off. The equity market is also in a risk-off mood ahead of the Fed announcement on interest rates this Wednesday, so expect this weakness to continue.
COIN 1-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.