- COIN stock closes Tuesday nearly 5% higher at $240.09.
- Bitcoin bounces back above $50,000 as risk is back on.
- Crypto stocks surge with most names up 5% and some even more.
Crypto stocks were some of the best performing names on Tuesday as Bitcoin, the undisputed crypto leader, broke above $50,000 for the first time in a month. Most importantly, Bitcoin appears to have steadied above $50,000. The cryptocurrency has been strong since the Federal Reserve indicated that it had no plans to ban it. This has at least offset some headwinds from the Chinese crackdown on the entire cryptocurrency sector. Bitcoin above $50,00 was a clarion call for the crypto stock sub-sector, and most names duly obliged with some strong moves higher. COIN closed at $240.09 for a 4.7% gain. MSTS was up 7.21%, RIOT +4.32% and MARA closed up an impressive 10.59%, see more on MARA here.
Coinbase (COIN) stock news
| Market Cap | $50.6 billion |
| Enterprise Value | $50.4 billion |
| Price/Earnings (P/E) | 22 |
|
Price/Book |
47 |
| Price/Sales | 36 |
| Gross Margin | 87% |
| Net Margin | 44% |
| EBITDA | $2.34 billion |
| 52 week high | $ 429.54 |
| 52 week low | $208 |
| Short Interest | 2.1% |
| Average Wall Street rating and price target |
Buy $377.35 |
The strong performance of crypto stocks can be traced back to the October 1 testimony by Federal Reserve Chairman Jerome Powell, who said there were no plans to ban cryptocurrency. This set Bitcoin on a surge, and crypto stocks followed soon after. However, news for COIN was tempered somewhat the same day when Reuters filed a report that hackers had stolen from accounts of at least 6,000 customers of Coinbase Global (COIN). The Reuters report cited a breach notification letter sent to affected customers. Unauthorized third parties exploited a flaw in the company's SMS account recovery process to gain access to the accounts and transfer funds to crypto wallets not associated with Coinbase, the company said. "We immediately fixed the flaw and have worked with these customers to regain control of their accounts and reimburse them for the funds they lost," a Coinbase spokesperson said on Friday.
News from Coinbase rival Binance on Tuesday sheds a more positive light with volumes remaining strong and thus erasing fears that a regulatory crackdown would hamper cryptocurrency trading on the Binance platform. Research for Reuters carried out by Cryptocompare showed trading volumes of $789 billion in September versus $454 billion in July. Binance did not comment on the story.
Coinbase (COIN) stock forecast
The chart now looks a lot healthier following Tuesday's move and a powerful green candle breaking the recent downtrend. $231 is the point of control since the IPO, meaning the price with the highest amount of volume. Volume means price acceptance and so support. This move needs to break the September 23 high at $245.80 to turn the stock bullish in our opinion. This will take COIN into a lighter volume zone, meaning gains might be easier to sustain. Breaking $245.80 will also get COIN back above the 200-day moving average, and it should also see the Relative Strength Index (RSI) back above 50. Keep an eye also on the Moving Average Convergence Divergence (MACD) that is about to cross over into a bullish zone.
FXStreet View: Neutral, bullish above $245.80.
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.