Coinbase’s Stock Value Triples in 2023 Following the Company’s Successful Navigation Through Cryptocurrency Turmoil
**Coinbase Global Inc. Shares Surge Amid Wall Street Euphoria**
*Latest Rally Highlights Optimism Around US Crypto Exchange*
In a month that has seen a pan-market rally, the spotlight is shining on Coinbase Global Inc. as its shares have surged by 62% in November, leaving traders and investors buzzing with anticipation. The frenzy around the largest US crypto exchange is fueled by hopes of increased business, especially if authorities give the green light to exchange-traded funds (ETFs) targeting Bitcoin.
**Wall Street Euphoria**
The surge in Coinbase shares has added a staggering $12 billion to the company’s market value, with the stock more than tripling in 2023. This November, the shares have seen the biggest increase since January, surpassing $120 each and trading above the average analyst target of $84.
**Analyst Sentiments**
Analyst John Todaro of Needham & Co. stated, “Coinbase is in a better position today than really any other point as a public company.” This positive sentiment is the result of the company surviving industry shakeout years, positioning it to emerge stronger.
**Momentum Building for Coinbase**
2022 and 2023 have been decisive years for Coinbase, with the company posting seven straight quarters of losses. However, momentum began building behind Coinbase this year, driven in part by the legal reckonings of competitors. Additionally, the US Securities and Exchange Commission is inching closer to the approval of US-listed Bitcoin ETFs, with expectations for approvals as soon as early January.
**Mixed Sentiments**
While traders and investors are optimistic about Coinbase, data shows that investors who bet against Coinbase shares have accumulated paper losses of $1.3 billion in the past 30 days.
**Legal Reckonings of Competitors**
The legal troubles of competitors have also had an impact on the industry. A massive fraud conviction for FTX’s Sam Bankman-Fried and a major dispute settlement for Binance has brought both concerns and opportunities. The settlement with Binance has lifted an overhang for the entire crypto industry and has been considered a positive for Coinbase.
**Looking Ahead**
The big question now is whether the bullish momentum for Coinbase can be sustained. With more than 40% of Wall Street analysts issuing hold-equivalent ratings for the company, the overall sentiment is cautiously optimistic.
**Ark Investment Management’s Moves**
Cathie Wood’s Ark Investment Management LLC has made moves in the past month, selling over 30,000 shares of Coinbase and more than 1.5 million shares in the quarter ending Sept. 30. Despite these sales, Ark remains the fourth-largest holder of Coinbase shares.
**Moving Forward**
Analysts like Todaro are still bullish on Coinbase, anticipating a new bull cycle. The possibility of crypto taking a “little bit of a breather” is also being considered, but the overall sentiment is that this could be just the beginning of a new bull cycle.
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