- Coinbase share price has jumped by over 100% in 2023.
- Other companies like Riot Blockchain and MicroStrategy have also soared.
- Mike Novogratz believes that Coinbase is well-positioned for the future of crypto.
Coinbase stock price jumped sharply on Tuesday as investors reacted to the return of the raging bull in the crypto market. COIN shares have jumped by over 110% this year, giving the company a market cap of more than $15.3 billion. Other crypto-focused stocks like Riot Blockchain, Argo Blockchain, and Microstrategy also jumped.
Mike Novogratz is bullish on Coinbase
Coinbase has an important role in the cryptocurrency industry. Unlike companies like Huobi, Binance, and OKX, it is the only company regulated by American regulators like the Securities and Exchange Commission (SEC).
It is also audited by Deloitte, one of the top accounting firms in the world. Most importantly, it is the most transparent company in the industry since it is mandated to publish regular financials. It does this every quarter.
However, Coinbase has not been immune to the challenges of the crypto industry. For example, it is under stiff scrutiny because of its staking solutions. As you recall, the SEC settled with Kraken in February and barred it from offering these solutions.
Read more: Complete review of Coinbase Pro.
Still, analysts believe that Coinbase is still a good investment. In an interview with CNBC, Galaxy Digital’s Mike Novogratz said that the company was so important for the crypto ecosystem. For one, unlike other companies, the firm has become popular among American institutional investors.
https://www.youtube.com/watch?v=Kd1b8BaJLPs
Also, Coinbase has diversified its business in the past few months. It has grown its subscription business, which tends to be less cyclical.
Therefore, there is a likelihood that Coinbase stock price will do well in the coming months if the raging bull in the crypto industry continues.
Still, there are challenges ahead. For one, there are concerns about the company’s exposure to Ethereum, which is being looked at by regulators. As a proof-of-stake coin, there are concerns that regulators in the US will put more emphasis on it.
Coinbase stock price forecast
The 4H chart shows that the COIN share price has been in a strong bullish trend in the past few days. It has moved above the 25-period and 50-period moving averages. The shares have moved above the key resistance level at $69.15.
However, it has formed a double-top pattern at $85.42. In price action analysis, this pattern is usually a bearish sign. Therefore, there is a likelihood that the stock will likely rise as buyers target the key resistance level at $85.42, which is about 21% above the current level.
