Coinbase stocks have hit the bare market this year as the crypto industry continues to stay and most coins are crashing. Coin stocks plummeted to a low of $176 this month, down almost 50% from the previous year. Market capitalization fell from $86 billion to $48 billion, resulting in a wipeout of $38 billion.
Coinbase News: Get Deribit
Coinbase, the largest crypto exchange in the United States, created a headline this month. The important Coinbase news was a decision by the Securities and Exchange Commission (SEC) to end the long-running lawsuit. Under Gary Gensler, the agency accused Coinbase of providing unregistered securities on its platform.
The SEC has also concluded other similar lawsuits against other top players in the crypto industry, including UNISWAP, Ripple Labs, Kraken and Opensea’s NFT giants.
Another top Coinbase news came from Bloomberg. Bloomberg reported that the company is considering bidding on Deribit, the top crypto derivatives company. This will be a big move as it moves to the largest derivatives player in the crypto industry. Estimates estimate that the transaction valued Delibit at around $5 billion.
There are indications that crypto companies are considering buying at a large scale this year. This week, Kraken acquired Ninjatrader in a $1.5 billion deal.
These actions occur when the crypto industry faces major challenges. Bitcoin prices have been revised after falling from an all-time high of $84,000 from today’s $109,300. Ethereum Price plummeted from $4,080 to $1,800, but most of the Altcoins fell apart. Additionally, Crypto ETFs have lost a significant amount of assets this year.
Coinbase is fighting growing competition with Binance, MexC, Kraken, OKX, HTX and other top crypto exchanges.
Coins will grow slower this year
The latest financial results showed that Coinbase’s business went well in the fourth quarter. Quarterly revenue increased from $904 million in the fourth quarter to $1.128 billion in the 24th quarter.
The most important detail of the report is that it roughly balances the balance between transaction revenue and subscription. Transaction revenues increased to $572 million, with the subscription and services segment winning $641 million.
Subscription revenue comes from a variety of areas. Most of it comes from stubcoin, while the rest comes from blockchain compensation, interest and financial fees, management fees and other services. The sector has a higher margin and its business is more stable.
Wall Street analysts hope that Coinbase’s business will slow down in the coming months as crypto prices relax. The average estimate shows that revenues will be $2.23 billion in the coming year, up 35% from the same period last year. This year, it will then reach $8.12 billion. However, this growth depends on the performance of the crypto market.
Coinbase stock price analysis
Coin Charts with TradingView
Daily charts show that coin stocks have crashed over the past few months, falling from $350 to $190. We are about to form a cross-pattern of death as the 50-day and 200-day exponential moving averages (EMA) formed a bearish crossover pattern.
Stock also formed a bearish pennant pattern, characterized by long vertical lines and triangle patterns. Therefore, Coinbase stock prices could have a strong bearish breakdown in the coming days. The next major support level to monitor will be reduced by 20% from the current level.
What’s next for Coinbase stock after a $38 billion wipeout? First appeared on Invezz
