Coinbase Stock Forecast: COIN Price Breaks Above $180, Poised to Rise Over 20% Further

TradingKey08-21 20:33

TradingKey - Coinbase briefly broke above $180, with potential for a further 22% gain if it holds that level.

On August 21 Eastern Time, Bitcoin prices surged over 10% intraday, approaching the $80,000 mark and boosting cryptocurrency exchange Coinbase (COIN)'s stock, which surged over 5% in pre-market trading to break above $180, standing at $180.99.

The rally in Bitcoin prices drove Coinbase's stock higher for two main reasons: 1. Increased volatility in Bitcoin and mainstream tokens drove growth in transaction fee revenue from Coinbase's retail and institutional users; 2. Coinbase directly holds 16,492 Bitcoins, directly boosting its asset returns.

However, after approaching near $80,000 today, Bitcoin quickly faced a bearish counterattack, falling below $77,000 currently. Going forward, if cryptocurrencies experience a major crash or liquidity crunch, it will rapidly erode COIN's transaction revenue and asset valuation, which is also a major reason why COIN's stock gain today was lower than yesterday's 7% rise.

Currently, Coinbase's stock price is touching the rebound highs of June and July, which mark the midpoint of its $140–$220 range-bound fluctuation this year. If Bitcoin continues to pull back and weaken, Coinbase's share price is highly likely to be dragged down. If BTC can break above the $80,000 mark, COIN's stock price is expected to continue its rally toward $220, representing approximately 22% upside from current levels.

Coinbase stock chart, source: TradingView

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