Coinbase Global, Inc., better known as Coinbase, is an American publicly traded company established since June 2022 that operates a cryptocurrency exchange platform, offering over 150 crypto assets to its users. It is currently ranked the third biggest crypto exchange in terms of trading volume (over $5.8T), after Bybit and Binance (however, neither of these are public listed companies).
On 11th November, Coinbase shares surged to a 3-year high ($334.66), following a positive hype that the Trump administration would be crypto-friendly. Rising cryptocurrency prices attracted more buyers to hop onto the bull ride, thus generating more trading activity which eventually boosted the company’s revenues through increased fees. In addition, a promising proposal of reduced compliance requirements for crypto trading and custody platforms by Tim Scott (who will be replacing anti-crypto Senator Elizabeth Warren as the Chair of the Senate Banking Committee) shall provide considerable relief for the crypto industry. Also, the voluntary resignation of SEC Chair Gary Gensler on 20th January next year (the day of President-elect Donald Trump’s inauguration) may serve as another positive catalyst. Under Gensler, the SEC has previously charged Coinbase for the unregistered offer and sale of securities in connection with its staking-as-a-service program.
In addition, Trump’s social media company – Trump Media & Technology Group (better known as DJT, operating the Truth Social app which is seen as a clone of X/Threads/Twitter) has been reported to be in talks of acquiring a crypto trading firm named Bakkt Holdings. Such a move marks another significant foray by the elect-president into the cryptocurrency space. He has an ambitious proposal to establish a national strategic Bitcoin reserve (to acquire up to 200,000 BTC annually for five years, equal to 1 million BTC or around 5% of Bitcoin’s total supply), yet skepticism also arose over its practicality, given the US budget deficit of over $1.8T and also the extensive regulatory changes and official government recognition of Bitcoin as a national asset that are required to initiate the plan.
Technical Analysis:
#Coinbase, Daily: Coinbase’s share price last closed above $300, a 161.8% FE level projected from September through October 2024. Nearest resistance is seen at recent highs $341.27, in which breaking above this point shall encourage the bulls to continue testing the next resistance at $372. On the other hand, if price closes below the $300 support, the next level to be focused on will be $250 and $222. MACD indicator displayed a decreasing bullish momentum in the meantime.
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Larince Zhang
Market Analyst
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