Is the cryptocurrency market recovering? If you asked TeraWulf (NASDAQ:WULF), you’d likely find that was so. Ask cryptocurrency stock Coinbase (NASDAQ:COIN) and you’d likely get much the same answer. Coinbase, earlier in Tuesday’s trading, managed to clear highs that it hasn’t seen since August 2022. Up over 8% at the time of writing alone, it’s on track to keep the new highs coming.
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What prompted this massive run-up in Coinbase? Mainly, it’s the advances seen in Bitcoin (BTC-USD) itself. With Bitcoin now solidly back over $30,000 per coin, and the global crypto market cap now up to $1.19 trillion, and the hope that the first ever Bitcoin exchange-traded fund (ETF) will finally be approved by the Securities and Exchange Commission, there’s a lot of reason to look for Bitcoin—and cryptocurrency in general—to recover. That should prompt new interest in exchanges like Coinbase as well.
Coinbase was already on something of a comeback trail to begin with. It’s recovered 60% of its losses since the SEC filed a lawsuit against it previously, targeting allegations of selling unregistered securities. Further, Coinbase also established a new agreement with BZX Exchange to set up surveillance-sharing operations for five Bitcoin ETF applications. Such surveillance-sharing systems should win Coinbase some favor with the SEC, who has claimed that these systems are vital to preventing market manipulation from taking place.
Analysts, meanwhile, aren’t so sure that Coinbase can sustain the turnaround. With six Buy ratings, seven Holds, and six Sells, opinion is almost perfectly split, and sits at a consensus Hold. However, with an average price target of $57.41, Coinbase stock comes with a downside risk of 34.98%.
