Coinbase (NASDAQ:COIN), the largest cryptocurrency exchange in the United States, has been subject to a great deal of volatility over the last few weeks, a trend closely reflecting the overall cryptocurrency market on which it depends. Yet, new analyst sentiment and moves within the sector recently sent Coinbase up 2.3% in premarket trading. The company has held onto those gains going into this morning's trading, meanwhile, and added to that position since.
Recent Developments Prove Mixed for Coinbase Stock
The latest developments around Coinbase stock today are delivering a mixed picture for the company. Recent word out of the Internal Revenue Service (IRS) for the United States will hit cryptocurrency investors hard, as new changes look to clamp down on the more freewheeling aspects of cryptocurrency use. One new rule would require any business that receives “cryptoassets” valued at over $10,000 US would need to report same to the IRS. This is in line with cash transactions; businesses that receive cash in that amount are likewise required to report. Recent anti-cryptocurrency rhetoric from the Chinese government, which included potential crackdowns on trading and mining, wasn't seen to help matters.
However, this isn't stopping major institutions from getting more involved with Coinbase stock. On Friday, Ark Investment Management bought an additional 223,181 shares to add to its stake in the exchange. The purchase was valued at around $50.7 million. Trading volume in general has been noticeably lower from its average of late, however.
There is also a growing trend for corporations to carry cryptocurrency on its books, using it as a store of value much in the same way that companies own stock; Square (NYSE:SQ), Tesla (NASDAQ:TSLA) and MicroStrategy (NASDAQ:MSTR) all carry substantial balances of Bitcoin. MicroStrategy's stock price has actually fluctuated according to the price of Bitcoin thanks to the sheer amount of the cryptocurrency it owns. Such moves are said to not only draw interest in private ownership, but also potentially establish the means to establish cryptocurrency as a viable alternative payment option.
What Does the Coinbase Stock Forecast Look Like to Financial Analysts?
Our latest research finds that the picture among financial analysts, in general, seems to be to ignore the volatility inherent in the cryptocurrency market and focus on the stock, which has held a rating of “buy” for much of its existence. The Coinbase stock price prediction, therefore, is looking up.
Back in April, around the time of the Coinbase stock IPO, the company had five “buy” ratings and one “hold” to its credit. Both figures have surged since, as this month, the company now has nine “buy” ratings and four “hold”. The ratio of “buy” to “hold” has remained roughly the same, even if the numbers have surged overall.
The Coinbase price target, meanwhile, has an extremely broad range. The current average share price target is $393, with a high of $650 and a low of $250. With Coinbase stock currently selling at $227.18 as of this writing, there's plenty of upside potential for the company.
Recent developments have also been kind to the company. Earlier today, Goldman Sachs initiated coverage on the company with a recommendation of “buy” and a price target of $306. Reports noted that Goldman Sachs considers Coinbase to be the best way to get exposure to the cryptocurrency market overall, and looks for the stock to gain accordingly as noted by its price target.
Goldman Sachs is just part of the picture, however; last Thursday, Piper Sandler initiated coverage on Coinbase with an “overweight” rating and a price target of $335. Wedbush did likewise a day prior, except its price target was a more conservative $275. That same day, Compass Point launched its coverage with a “neutral” rating—a step below Wedbush's—but with a higher price target at $325. Two days prior to either of those, Oppenheimer stepped in with an “outperform” rating and a price target of $434. Even the current high isn't that old; DA Davidson filed that $650 target on the result of a boost back on April 21, along with its own “buy” rating.
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