Despite facing challenges in 2022, Coinbase is currently demonstrating remarkable results. Discover the significant $900 million turnover reported by Bermuda-based derivatives market Coinbase International in recent days.
With a performance of +50% in June, the shares of cryptocurrency exchange Coinbase (COIN) flexed their muscles. The stock has been put to the test throughout 2022, but it is currently showing fantastic results. A Bermuda-based derivatives market called Coinbase International reported a $900 million turnover in recent days.
Coin: Shares of Coinbase increased by 50% in June
BlackRock’s request for a spot ETF on bitcoin has sparked a positive reaction in Coinbase (COIN) shares, which has resulted in a solid performance on the Nasdaq.
The exchange’s share price has changed significantly along with the cryptocurrency market, which has seen a $150 billion increase in capitalization since the beginning of June.
In particular, COIN has increased from $52 to $71 over the course of the last 15 trading days, making up all the ground lost when the SEC sued Coinbase.
The US regulator had alleged that Brian Armstrong and his group offered investors “unauthorised sales of securities” and broke some registration rules, which led to a sharp decline in the exchange’s stock price.
However, Coinbase shares have recovered from the ashes, with a +17% increase in the last five trading days alone, as a result of a number of investment firms vehemently petitioning the SEC to allow them to offer bitcoin trading/investment services to their clients.
Along with BlackRock, several companies have expressed interest in the bitcoin market, including Fidelity, Bank of America, Morgan Stanley, WisdomTree, and Invesco.
Coinbase (COIN) shares currently have a market capitalization of about $17 billion and a value of $72.43 per share.
The stock appears to be graphically resuming a bullish pattern; if the $77 resistance is overcome, it might quickly approach the psychological $100 level.
Shares of Coinbase (COIN) make up some of the ground lost in 2022
As a result of the stock’s and the cryptocurrency industry’s overall fall in 2022, Coinbase (COIN) shares are making some of the ground they lost.
Many cryptocurrencies saw a severe bloodbath in the year that followed the bull market of 2021, including Coinbase shares, which lost almost 85% of their value at this time.
With a doubling of share prices and, more crucially, increased institutional interest in a previously underdeveloped market, 2023 appears to be off to a good start.
Despite COIN experiencing an excellent rebound in the first two quarters of 2023, others believe that it “could prove short-lived”.
These were Mark Palmer’s words from Berenberg Capital Markets, who hinted that he wasn’t positive on the stock in a note to clients.
With an anticipated price target of $39, the analyst also mentioned the systemic risks of the cryptocurrency sector, which might result in unfavorable price action for Coinbase and its stock at a time of increased regulatory tensions.
If the SEC wins its case against Coinbase and forces the exchange to stop offering staking products, the company’s revenue may drop significantly. This would obviously have an impact on the Nasdaq stock market.
This exact issue will arise for the exchange on July 4 in a number of US counties.
In eight days, Coinbase International trades derivatives at 900 million volumes
The Bermuda-based foreign subsidiary of Coinbase (COIN), which attracts a lot of derivatives trading volume, is the subject of speculation on the future share price.
Particularly, the market saw $900 million in transactions between June 21 and June 28, all of which involved just two contracts.
The only trading choices provided by the exchange, which only started operating in May but is currently bringing in an average of $100 million a day, are BTC-perp and ETH-perp.
Data extracted from The Block Research’s platform shows that Coinbase’s international market is off to a solid start and may cause the business to boost some of its income, which would be ideal for the rise of COIN stock.
With a volume of $444 billion in just June, Binance continues to be the market leader in cryptocurrency futures trading, despite the encouraging numbers.
However, the distance between Coinbase and Binance might close if institutional interest keeps expanding at this rate in the upcoming months.
Additionally, if the legal disputes with the SEC are resolved, investors may gain confidence in the sector, which would help to positively stimulate the markets by increasing trading volume.
In an email to The Block, Emmanuel Goh, a product manager at Coinbase and a former CEO of Skew, stated:
In order to increase our market share, we are trying to introduce new features and more goods in the second half of the year.