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The price of Bitcoin hit a 2023 high, and Coinbase Global (COIN) shares went through the roof. It looked like the crypto exchange had benefited from Binance’s recent legal problems.
People have noticed that COIN’s price has been doing well in line with the overall good trend in the crypto space led by Bitcoin.
This week, the price of Coinbase stock has been going up quickly because its competitor, Binance, is having some problems with the government.
COIN has been soaring for five days in a row and hit a four-month high of $114.4 as a result. But if you look at the chart for the daily time frame, you can see that this rebound is part of a rising channel. This means that the asset is ready for another surge.
The Nasdaq-listed Coinbase stock reached an 18-month high on Friday. The prices of Ethereum and Bitcoin are also rising.
The price of a COIN share was $115.75 at the time of this writing, up almost 7% in the last 24 hours. It has almost reached $117 per share so far today. Just one month ago, COIN was worth $82 per share, but now it’s worth over 40% more.
According to data provided by on-chain research company CryptoQuant, the US exchange’s bitcoin reserves have recently shot up, while Binance’s have fallen.
Over the past several months, Coinbase has become even more of a major player in the digital currencies sector, even as other companies in the same field have gone out of business.
The exchange’s solid track record has been a key part of its success, especially since it promotes a strong compliance-first approach after rivals like Binance have had major run-ins with the law.
This week, Binance admitted to being guilty of money theft in federal court. The company decided to pay fines of $4.3 billion, and Changpeng “CZ” Zhao, the founder and CEO, also admitted guilt and said he would resign. The news somehow benefited its rival, Coinbase, as seen from the decent numbers it has so far tallied.
Total crypto market cap at $1.4 trillion on the weekly chart: TradingView.com
As of November, the price of Coinbase stock has made an impressive rebound, coming back strongly from a psychological support level of $70. In the last few days, this upward trend has pushed the price of the asset to a remarkable $115, which is a 62% climb.
Based in San Francisco, the Nasdaq has listed Coinbase as a public company since 2021. The last time COIN was worth this much was in May 2022, just before the bubble burst for Terra and most of the digital asset economy crumbled along with it.
Analysts said that the Binance legal ruling could also be good for Coinbase because it could make it easier for US regulators to grant permission for a Bitcoin exchange-traded fund (ETF).
A Bitcoin exchange-traded fund (ETF) is a type of investment trust fund that lets buyers benefit from changes in the price of Bitcoin without actually holding the cryptocurrency itself.
It works like a regular stock on a stock market, helping investors buy and sell shares that give them ownership in the Bitcoin ETF. Bitcoin is what the ETF is based on, and its value is linked to the success of the crypto asset.
Meanwhile, as COIN surges to an 18-month high, nearing the $117 mark, speculation arises about the possibility of it reaching $150. The impressive rally showcases the platform’s resilience and market confidence.
Investors are keenly observing whether this upward momentum will persist, potentially propelling Coinbase to new heights. The crypto community awaits eagerly, anticipating whether COIN will continue its ascent towards the speculated $150 milestone.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Freepik