COIN Stock Benefits After Crypto Market Rally Amid Recent Bank Run

The stock price surged over 125% since the beginning of this year.

Coinbase (NASDAQ: COIN) successfully navigated through the crypto winter. The crypto exchange clearly has an upper hand in ongoing the crypto market revival. This comes after the fall of several prominent banks. Amid all the high octane market events, COIN stock rose more than 20% within a month.

Banking Crisis Bolstering Coinbase (NASDAQ: COIN) Stock

Given the collapse of popular crypto-friendly banks, Silvergate and Signature, Coinbase managed to safeguard its position in the nick of time. First, it abandoned the California based Silvergate as its banking partner seeking the uncertainties following its delay in the annual report. And now, it reported on Monday, March 20, that it paused operations via Signet, Signature Bank’s real-time payment solution, for crypto payments.

COIN stock (NASDAQ: COIN) is down by more than 80% since its listing in April 2021, which also happened to be the all-time high. In contrast, the stock price significantly rose up to 125% since the starting of this year. Stock market revival could be considered as the long term reason while the recent rally in the crypto market led to an uprising in the short term. The cryptocurrency market benefited amid the bank collapse chaos.

Coin Stock Chart Movement

COIN stock price is currently trading at $75.14 with a slight increase of 0.21% in the last 24 hours. Given the price moving around the 200-EMA, the stock price indicates a bullish trend. The price bounced from its recently attained support at around $49.9. If it follows the trend, it could test the resistance at $87 again, but the movement is very likely to be consolidated.

The optimism is significantly high among analysts, which is reflecting in increasing stock rating and target prices. Barron’s reported US Tiger Securities, Bo Pei, upgraded COIN stock’s rating from Hold to Buy and its price target from $65 to $200. The target price of $200 for the crypto company’s stock was about a year ago.

Coinbase Trying Mitigate the Regulatory Troubles

Despite the recent surge in price, the crypto firm could still have troubles given rising regulatory concerns. The failure of several crypto companies over the past year alerted regulators.

Leading US crypto exchanges also reportedly submitted a petition to the US Securities and Exchange Commission (SEC) defending crypto staking. The financial regulator took an aggressive stance toward crypto staking, recently charging Kraken. Coinbase condemned the move at the time and called for defending staking if need be. However, the company now took the proactive approach and reached the regulator with clarification on staking services its status as a security.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing