Coinbase stock price surges 7.25% pre-market to $143.88 as Bitcoin explodes to $42,000, climbing to pre-Terra Luna crash levels.
Published 9 hours ago
Coinbase Global, Inc. ($COIN) stock is exploding alongside Bitcoin (BTC) and the rest of the crypto market. Investors are turning back to crypto stocks like $COIN as the market teases a full-blown rally before the end of the year.
Yahoo finance market data shows $COIN increasing by 7.37% to trade at $143.88 pre-market on Monday. The stock price had rallied by 7.25% to $133.76 at market close on Friday.
Meanwhile, Bitcoin price sustained the bullish outlook from last week, broke above resistance at $40,000, and climbed to touch highs at $42,000.
Are Bitcoin Spot ETF Applications Driving Coinbase Stock Price?
As the crypto market waits anxiously for the Securities and Exchange Commission (SEC) to make its decision on the coveted Bitcoin spot exchange-traded funds (ETFs), Coinbase already boasts a significant head start.
Out of the 12 applications from companies interested in operating the ETFs, nine have settled on Coinbase as their custody services provider. Some of these companies include the largest digital asset manager Grayscale, BlackRock, Ark/21 Shares, VanEck, Fidelity, Valkyrie, Franklin Templeton, Bitwise, and more.
Custody services are a vital part of #bitcoinETF applications.
So far, @coinbase has dominated. Nine out of the 12 prospective issuers have chosen the crypto exchange for their custodian business.
Can anyone else join the race? https://t.co/lEhNBaRjKa pic.twitter.com/lss6c7uX8f
— CoinDesk (@CoinDesk) December 3, 2023
The approval of Bitcoin spot ETFs would be a game changer for the fast-growing industry. A massive influx of money is expected from institutional investors, who would be able to buy shares of Bitcoin on traditional stock exchanges.
Investing in Bitcoin will no longer have to be complicated, with the complexities of navigating crypto exchanges and custodial processes eliminated. A spot ETF would also serve as confirmation that the crypto market has matured with minimal to no manipulation.
Coinbase position as the most sought-after custody services provider could be a major boost to its stock price, which has increased by 325% since January to date and 91% in two months from October 1.
Coinbase Stock Price Sits On Robust Support
At the close of the trading on Friday, Coinbase ($COIN) price sat on top of a massive $130 support. The Moving Average Convergence Divergence (MACD) indicator reinforced the bullish outlook, hence the increase to $143.88 pre-market trading on Monday.
Traders would be looking out for higher support above $140 as the market opens while gazing upon the next move to highs above $150. The position of the MACD should signal the next direction the stock would take.
If the uptrend continues, COIN will also move higher and solidify the bullish thesis. However, a bearish cross is likely to manifest with the blue MACD line moving below the red signal line could mean that sellers are ready to seek revenge followed by a trend reversal or consolidation.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/coinbase-stock-price-surges-7-25-in-tandem-with-bitcoin-buying-coin-now/