Crypto stocks, including Coinbase (COIN) and MicroStrategy (MSTR), are rewarding investors handsomely Bitcoin (BTC) price near all-time highs. Shares of Coinbase, one of the leading companies in the crypto industry, have been on an upward trajectory since late last year when they traded at $71.75.
According to Yahoo FinanceCurrently valued at $222, COIN is up over 8% on the day with a price change of $13.66 since Monday’s open.
Other crypto stocks like MicroStrategy’s MSTR also performing well in tandem with Bitcoin’s surge to $66,000. At the time of writing, MSTR shares are up $205 from Friday’s close of $1,285, representing an 18.56% gain.
1. Bitcoin ETFs trigger rallies in COIN price
The launch of Bitcoin exchange-traded funds (ETFs) in January following the approval by the US Securities and Exchange Commission (SEC) put Coinbase in the spotlight.
Out of the 11 Bitcoin ETFs greenlit by the SEC, eight of them partner with Coinbase for custody services. As the custodian of digital assets of some of the leading financial management companies such as BlackRock and Fidelity, Coinbase has received tremendous approval from investors seeking indirect exposure to cryptocurrencies.
The stock, COIN, began rising in September of last year as optimism for the spot ETF grew exponentially. Despite experts warning that the ETFs were a threat to Coinbase stock, its price has continued to rise and may well be on the fast track to hit a new all-time high at $428.
2. A Bullish Crypto Market
Cryptocurrencies bottomed out after the FTX crash peaked in late 2022. While many thought the widespread bankruptcy would sink the final nail in what looked like the crypto coffin, the outlook changed drastically in 2023 amid a mock BTC ETF-enabled hype.
Crypto stocks including Coinbase and MicroStrategy have since rallied alongside Bitcoin. While Coinbase is purely a crypto-based company, MicroStrategy has grown to become one of the largest holders of BTC.
The attention that Coinbase is getting is unlikely to fade in the short term, with the crypto market expected to maintain this bullish thesis in 2025. In April, Bitcoin will undergo the halving to reduce miner rewards from 6.25 to 3.125 BTC.
Every four years, Bitcoin halves miner rewards to control inflation. As a result, new coins entering the market fall significantly, affecting supply and demand dynamics.
Although a price increase after the halving is not a guarantee, past events have led to parabolic rallies. For example, Bitcoin exploded from lows around $8,000 in 2020 to its historic highs near $69,000.
Coinbase shares and other crypto stocks are likely to move higher with the crypto market regaining its former glory. The total market capitalization recently reached $2.5 trillion, highlighting increasing interest among investors.
3. Navigate COIN Price Bullish Structure
After successfully breaching an important weekly resistance around $180 (the green band now supports), COIN price broke out and reached $222 – its current value. Once again, bulls were put to the test. Can they beat the next key hurdle at $225?
The resistance shown in the red band coincides with a descending trendline that COIN should close above to establish the strength of the uptrend. Should bulls push past this barrier, Coinbase shares may not slow down as they close the distance to $300 and the $428 high.
related articles
✓ Share:
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication holds any responsibility for your personal financial loss.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
UnCirculars – Cutting through the noise, delivering unbiased crypto news
