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Can Cryptocurrency Stocks Hold Their Gains? COIN’s Future as Bitcoin Surges

Ellis HobbsAvatar
Written by Ellis Hobbs Reviewed by Jack Kellogg Fact-checked by Tim Sykes
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A significant uptrend in Coinbase Global Inc’s stock, trading 7.81 percent higher on Monday, is primarily driven by recent favorable news, including strategic partnerships and advancements in blockchain technology bolstering investor confidence.

Latest Developments

  • With a surge in Bitcoin’s value, hovering near $99,000, companies closely tied to the cryptocurrency world, such as Coinbase, are benefitting immensely from this trend.
  • The cryptocurrency market has exhibited strong performance with trading volumes increasing significantly, favoring companies heavily invested in digital assets like Coinbase.
  • Tesla’s pre-market activity showed a rise, influencing other tech stocks including Coinbase, which saw a notable rise in shares before trading hours.
  • A strategic collaboration involving Coinsilium aims at leveraging advanced technologies for better returns, showcasing the increasing interest in boosting digital asset treasuries.

Candlestick Chart

Live Update At 14:31:39 EST: On Monday, January 06, 2025 Coinbase Global Inc stock [NASDAQ: COIN] is trending up by 7.81%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Coinbase’s Financial Snapshot

When venturing into the world of trading, one must navigate with caution and avoid impulsive decisions. As millionaire penny stock trader and teacher Tim Sykes, says, “Be patient, don’t force trades, and let the perfect setups come to you.” This means understanding the importance of analysis and timing; rash actions can lead to significant losses. Taking a measured approach ensures that traders stay strategically positioned, enabling them to capitalize on opportunities with greater precision.

Coinbase Global Inc has been riding the wave of a growing interest in cryptocurrencies. As Bitcoin nearly touched the $99,000 level, company stocks related to digital assets, including Coinbase, witnessed positive movements. Coinbase’s stock price has shown varied fluctuations but seems to trend upwards in congruence with this cryptocurrency juggernaut, showcasing a dependency on Bitcoin’s trajectory.

Coinbase’s recent financial numbers offer a pretty comprehensive look at its performance. The company reported a total revenue of over $3.1B for recent quarters, with a pretax profit margin highlighted at 8.9% and an overall profit margin touching 15.88%. While these might appear modest amid turbulent times in the digital domain, Coinbase remains in the profitable end, boasting a notable rise in stock interest. From 273.92 opening on Dec 19, COIN saw rises ultimately resulting in a close at 291.78, attributed to trends signaling increased investor confidence. Yet, the challenges ahead remain, with price volatility reflective of broader market conditions.

According to its recent income statement report, Coinbase’s net income surpasses $75M, reflecting substantial trading activity given a heightened crypto interest. However, being closely tied to Bitcoin’s market sentiment introduces volatility and risk. An intriguing element is its cash flow reaching over $11B, indicating a robust liquidity situation compared to other sectors.

More Breaking News

Analyses reveal that Coinbase’s financial strength lies in a balanced debt ratio, with a total debt to equity positioned at 0.48, keeping obligations in check as crypto values gyrate. Despite a max price point around 326.23 on Dec 16, declines were notable closing off the year with an average not surpassing the low 290s as it transitioned into January 2025. Thus, dating COIN’s rally closely with crypto’s rally shows intertwined trajectories in trade.

Market Momentum & Risks

Bitcoin’s rise has clearly reflected in Coinbase’s operational performance, underscoring how sudden leaps in digital asset value can drive stock upswing for firms like COIN. News on Morgan Stanley’s interest in crypto trading could also catapult an influx of trading volume, setting the stage for optimistic outlooks and spurts.

Yet, it’s imperative to note the fluctuating nature, exemplified by rollbacks as described, as digital asset domains often face enhanced scrutiny and mystery regulations. So, while the recent news provides a bullish overview, the facade can easily flip with regulatory or valuation misadventures, forging some anxious investor views.

The deeper market perception considering COIN cautions approach strategies with probable instability driven by crypto’s volatility. Entering the crypto stock space necessitates prudent recalibrations based on recent financial data insights relating to Coinbase’s pivotal leverage and revenue shifts.

Summative Observations

The unprecedented rise in Bitcoin and other digital assets brings Coinbase into a limelight of speculative strategy development and trading reconsiderations. Concurrently, Coinbase continues being a centerpiece amid dynamic crypto waves, yet the direction rests considerably on Bitcoin’s performance coupled with broader technological adoption rates. There’s a need for vigilance – the waters are rewarding, yet famously unpredictable. As millionaire penny stock trader and teacher Tim Sykes says, “Consistency is key in trading; don’t let emotions dictate your trades.” As key financial metrics suggest resilience, the trajectory is far from tranquil; opportunities are ripe but demand discerning trader decision-making. Strategists may very well watch for gradual uptick continuations but with caution-driven balancing acts amid fluctuating sentiment in digital realms.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Our traders will never trade any stock until they see a setup they like. Their strategy is to capture short-term momentum while avoiding undue risk exposure to a stock’s long-term volatility. This method is especially useful when trading penny stocks or other high-risk equities, where rapid gains can be made by understanding stock patterns, manipulation, and media hype. Whether you are an active day trader looking for key indicators on a stock’s next move, or an investor doing due diligence before entering a position, Timothy Sykes News is designed to help you make informed trading decisions.

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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”