Coinbase seems to be enjoying the regulatory crackdown on its rival exchange, Binance. The Coinbase stock (COIN) has reached its highest point since May 5, 2022.
Quick Take:
- Coinbase (COIN) surpasses the $119 mark in the stock market.
- The exchange looks to topple Binance from the top spot in the crypto sphere.
- Bitcoin halving and approval of spot Bitcoin ETFs could be a breakthrough for Coinbase in 2024.
As Binance continues to struggle with legal complications, Coinbase is looking to regain its position as the leader in the cryptocurrency space. The former CEO of Binance, Changpeng Zhao, pleaded guilty to charges of money laundering and sanctions violations in the US.
CZ also resigned from the post of CEO and handed the reins over to Richard Teng. Binance made a settlement of $4.3 billion with US regulators. At the same time, Coinbase has shown resilience against a fierce regulatory campaign. Thus, showing signs of great potential and improvement.
The CEO of Coinbase, Brian Armstrong, recently commented on the Binance-SEC saga. He said,
“The enforcement action against Binance that’s allowing us to kind of turn the page on that and hopefully close that chapter of history. There are many crypto companies that are helping build the crypto economy and change our financial system globally. But many of them are still small startups. I think that regulatory clarity is going to help bring in more investment, especially from institutions.”
The COIN stock closed trading at $119.77 after gaining over 3.66% on the last day. It is about 256.5% above its year-to-date price, but it is still considerably down from its all-time high price of about $343 in November 2021.
Coinbase Eyes a Positive Start to the New Year
Another contributor to Coinbase’s growth is the positive price forecast for Bitcoin. Investors are looking to hold their funds for longer in hopes of a bull run as Bitcoin firmly stays above key price levels.
Coinbase has also posted double-digit gains in its EPS in recent quarters. Therefore, analysts predict that the first quarter of 2024 could be an interesting timeline for the COIN stock’s performance. The anticipation around the Bitcoin halving event could also lead to a price change in the price of COIN.
Bitcoin halving event is expected to contain the rate of new BTC creation. As a result, there will be a supply decrease of the token which could lead to a price increase. If Bitcoin goes up in valuation, relevant crypto platforms and service providers are also set to grow with it.
The approval of spot Bitcoin ETFs could also be a healthy development for Coinbase. It is reported that the exchange is backing 13 out of 19 spot Bitcoin ETFs that are currently awaiting approval from the United States Securities and Exchange Commission.
On the other hand, Coinbase is still facing a lawsuit from the SEC for its non-registration with the SEC. Coinbase took an aggressive approach to dealing with the lawsuit by questioning the authority of the SEC. However, the case has yet to reach any conclusion.
