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Cryptocurrency Surge: Will Coinbase Continue Its Upward Momentum?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
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Coinbase Global Inc’s stocks are trading up by 7.19 percent on Monday, fueled by a favorable sentiment following optimistic developments in the cryptocurrency market and regulatory clarity progress.

Overview

  • A range of crypto-related stocks, including Coinbase, witness a pre-market boost as Bitcoin surpassed the $96,500 mark, reflecting an encouraging rally.
  • Major digital assets see a significant uplift with Bitcoin almost reaching $99,000, sparking positive sentiment for companies like Coinbase and Riot Blockchain.
  • Further advancements in cryptocurrency market performance are driven by Bitcoin’s sustained rise above $97,000, benefiting stakeholders such as Coinbase.
  • Shares of Coinbase observed a notable pre-bell gain alongside other tech giants like Tesla and Nvidia amid positive market shifts.
  • Collaborations and advancements within the web3 sphere, highlighted by Coinbase’s recent custody partnership, promise potential returns.

Candlestick Chart

Live Update At 11:37:18 EST: On Monday, January 06, 2025 Coinbase Global Inc stock [NASDAQ: COIN] is trending up by 7.19%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview on Coinbase’s Recent Financial Performance

As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” Successful traders understand the importance of risk management and knowing when to step back. The ability to make calculated decisions and avoid unnecessary losses is crucial in trading. By accepting a break-even point rather than pushing for profitable trading in a volatile market, traders can preserve their capital for future opportunities. This mindset is key to long-term success and sustainability in the trading world.

Coinbase Global Inc. (COIN) continues to be a pivotal player within the ever-growing cryptocurrency market. At its latest earnings check, COIN reported notable figures that emphasize its strength amidst the turbulent digital asset landscape. For instance, the company’s earnings per share (EPS) hit $0.28, with a revenue of $3.1B, reflective of their adept strategies and calculated risk-taking in an unpredictable sector.

The key ratios from the latest data reveal a pretax profit margin of 8.9%, while the return on equity stands strong at 21.3% – testament to Coinbase’s efficiency in leveraging shareholder investments. Additionally, the profit margins, particularly the total profit margin of 30%, are indicative of the company’s profitable ventures and robust operational framework.

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Analyzing these critical figures against the backdrop of recent market news paints a promising picture for Coinbase, with its proactive stance on innovation likely to yield further success.

Bitcoin’s Influence on Coinbase

Bitcoin’s rally is an influential factor that cannot be overlooked when assessing Coinbase’s market performance. As Bitcoin recently surged, climbing close to the $99,000 benchmark, stakeholders like Coinbase have inevitably felt the positive ripple effects. Why is this significant for Coinbase? Well, Bitcoin serves as a barometer for other cryptocurrencies and, by extension, the platforms that facilitate their trading, including Coinbase.

The elevated Bitcoin prices, positively gauged by the CoinDesk Market Index, translate to healthy trading volumes and increased user activity on platforms like Coinbase. This scenario provides fertile ground for growth and more investment interest, which could likely manifest as an upward trajectory in Coinbase’s stock prices.

Collateral Benefits from Broader Crypto Adoption

Moreover, an intriguing development in the cryptocurrency market’s evolution resides in the wider adoption by financial institutions. Morgan Stanley’s E-Trade unit exploring crypto trading options speaks volumes about the mainstream acceptance of cryptocurrencies. And this has a ripple effect. As more traditional financial institutions nod towards crypto trading, platforms well-rooted in the crypto ecosystems like Coinbase could experience escalated user registrations and transaction volumes.

This trend gives Coinbase an upper hand in terms of market dominance and possibly market valuation over the coming quarters. However, this emerging landscape will require Coinbase to uphold its competitive edge and technological prowess to fully capitalize on these burgeoning opportunities.

Conclusion: Eye on Future Potential

Despite the volatility marked by prior setbacks, Coinbase exhibits resilient attributes poised for future gains. Fresh partnerships and the evolving acceptability of cryptocurrency trading among traditional financial entities buttress its financial standing and stock potential.

One thing is evident through this storm of financial figures and market trends – Coinbase is a player to watch. As millionaire penny stock trader and teacher Tim Sykes, says, “Preparation plus patience leads to big profits.” While some cryptocurrency gains might seem fleeting, Coinbase’s ongoing adaptability and market-conducive strategies earmark it as a potential frontrunner in the crypto-finance race. For traders and stakeholders with a keen eye on COIN, remaining attuned to these dynamic shifts will be quintessential as Coinbase navigates the volatile terrain of cryptocurrency markets.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”