Coinbase stock has rallied nearly 50% since low but it might be 'short lived'

The Block
The Block

29 Jun 2023 2:52 PM

Berenberg Capital Markets' Mark Palmer cautions investors to curb their enthusiasm around Coinbase's stock COIN....

  • Coinbase's stock price has surged from $52 per share on June 15 to $71 per share at the time of writing.
  • The rally is driven by a broader recovery in the crypto market and a flurry of ETF filings.
  • Analyst Mark Palmer from Berenberg Capital Markets believes the enthusiasm around Coinbase may be short-lived.
  • Palmer points out the risks Coinbase faces, including potential negative headlines and decreased revenues from cease and desist orders on its staking rewards program.
  • Palmer believes the downside risk of staking revenue losses outweighs the upside of Coinbase's partnership with BlackRock.
  • However, the analysis does not consider Coinbase's extensive ETF relationships and its role in the ETF race.

The sentiment of the article is mostly negative, as the analyst suggests that the enthusiasm around Coinbase's stock may be short-lived and highlights potential risks and downside factors.

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You May Ask

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