The crypto market, particularly Bitcoin, is stealing the spotlight this fall, possibly surpassing the popularity of Taylor Swift. Bitcoin ETF discussions are everywhere. Amidst this, it's easy to overlook that cryptocurrencies offer profit opportunities in various markets. Case in point: Coinbase stocks have experienced greater growth than BTC in the past month. Everything you need to know about this asset is in this piece.
While Bitcoin rightfully claims its throne in the market during the latter half of 2023, it's crucial to note the percentage increase. Bitcoin has risen by approximately 11% over the past month. And what about Coinbase stock? The company’s shares have grown by an impressive 75%.
How many companies boast such statistics? Naming even one is considered an accomplishment. If you want to stay updated on the daily champion, simply consult the list of today's top gainers.
Coinbase's progress since the beginning of the year looks almost surreal, with a staggering +280%. However, it's essential to recognize the exceptionally high volatility, as sharp changes can occur in both directions – up and down.
The primary correlation for Coinbase stock lies with the crypto market, particularly Bitcoin. When BTC rises, Coinbase follows suit due to its revenue from commissions. But what’s interesting is that Coinbase stock witnesses even faster growth than Bitcoin.
In other words, if you anticipate further growth in BTCUSD and other cryptocurrencies, considering the same for Coinbase shares is a viable option.
To enhance stability and foster predicted growth, Coinbase diversifies its business. Initiatives include the launch of a platform for derivatives trading and expansion into new markets like Canada, Brazil, and Singapore. Asset management is also on the horizon. Despite these efforts, regulatory risks loom, as evidenced by the SEC troubles faced by Binance, a competitor of Coinbase.
Despite diversification efforts and external factors, BTC's price remains the primary driver for Coinbase stocks. While it's possible for Bitcoin to change its trend, the volatile nature of the crypto market makes it doubly possible. If such a shift occurs, Coinbase stocks might decline faster than their ascent.
The BTC ETF plays a pivotal role in influencing Coinbase (and Bitcoin). Monitoring related news and developments in the crypto industry is essential before making any trading decisions.
