Coinbase stock analysis: the price soars with the Bitcoin boom

Bitcoin rose to a 20-month high this week.
In the same vein, Coinbase and other cryptocurrency-related stocks recorded significant increases.
Specifically, Coinbase has seen more transaction revenue as cryptocurrencies have recovered, and its shares appear more expensive than other exchanges.
Coinbase stock price continues to be driven by cryptocurrency market sentiment.
Coinbase has been one of the best-performing stocks in the Russell 1000, the U.S.
index of the 1,000 largest public companies, over the past week.
This shouldn't be surprising given the Coinbase company and what's happening in the cryptocurrency market.
In this article, in collaboration with XTB experts, we analyze the latest news on the cryptocurrency market.
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Check Out XTBBitcoin's Supply Rises to 20-Month High Cryptocurrencies, and especially Bitcoin, have been in the spotlight lately as digital assets have seen strong gains.
Since the beginning of the month, Bitcoin is up by around 17% and we are only 7 days away from the beginning of December.
This week the most famous cryptocurrency surpassed the $44,000 mark and reached its highest level in 20 months.
Strong gains could also be seen in other cryptocurrencies, with Ethereum and Dogecoin up 11% and 22% respectively since the beginning of the month.
The solid performance of cryptocurrencies is providing a boost to cryptocurrency-related stocks, such as Coinbase.
Gains in the cryptocurrency market have supported valuations of U.S.
cryptocurrency-related stocks this year.
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Invest in Crypto CFDs NowCoinbase Revenue is Correlated to the Price of Bitcoin Given that Coinbase is a digital asset exchange, it should come as no surprise that the company's business performance is closely tied to the performance of digital assets, such as Bitcoin and Ethereum .
The two cryptocurrencies mentioned are particularly important to Coinbase as Bitcoin and Ethereum accounted for 38% and 19% of total trading volumes on Coinbase in the third quarter of 2023, respectively.
Coinbase said during its third-quarter earnings presentation earlier in November to have generated $105 million in total transaction revenue in October 2023 as cryptocurrency prices began to rebound.
To put this figure into context, it should be said that transaction revenues in the entire July-September 2023 (Q3) period amounted to $289 million.
While Coinbase did not announce such data for November, the continued recovery in cryptocurrency prices and news from other companies suggests it could have been a solid month – Robinhood Markets said notional cryptocurrency trading volumes on its exchange were around 75% higher in November than in October.
It is possible to spot a correlation, although not perfect, between the price of Bitcoin and Coinbase's quarterly revenue.
Source: Bloomberg Finance LP, XTB Coinbase Stock: Chart Analysis Finally, let's take a look at Coinbase (COIN.US) stock recently.
Taking a look at the D1 chart, we can see that the recent strong upward movement has pushed the stock price above the resistance zone at the $112.50 area, marked by the 23.6% retracement of the momentum at decline began in the fourth quarter of 2021.
The breakout from the $47.00-112.50 range suggests the possibility of a move towards $185 per share, a level not seen since April 2022.
A key resistance zone, between the 50% retracement and the $210 threshold can be found slightly higher.
However, traders should keep in mind that movements in Coinbase stock are highly dependent on sentiment in the cryptocurrency market, as highlighted by the second chart below.
Source: xStation5 How to stay updated on market news and analysis? If you want to stay updated on the latest market news and access economic-financial analyzes and forecasts, we suggest you visit the XTB news section.
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