2024: A Rough Start for Coinbase Stocks on the Market
The year 2024 hasn’t been favorable for Coinbase (COIN) stocks, as recent events have negatively impacted their price. While 2023 was a positive year for COIN, the drop in Bitcoin’s price has affected its shares.
Latest News: Coinbase (COIN) Stocks in 2024
Coinbase shares closed at around $174 in 2023. However, on January 2nd, the reopening of Nasdaq saw the stock price declining to around $157. The drop continued with an opening of $144, followed by a partial recovery and a closing price of $152.
The opening drop was due to false news about the SEC’s decision on Bitcoin spot ETFs, which was later proven to be false. In just two days of trading in 2024, COIN shares experienced a cumulative loss of 12.5%. Although this may seem abnormal for a stock, it is not unusual considering the volatility of the crypto markets.
Coinbase’s Performance in 2023
Despite the recent setbacks, 2023 was a highly successful year for Coinbase stocks. In just one year, the price of COIN shares increased by almost 400%, outperforming Bitcoin’s growth of +175%. This significant improvement can be attributed to the sharp decline in COIN’s value in 2022 compared to Bitcoin.
During its debut on the stock market in April 2021, COIN had an absurd opening price of $380, but it closed at $252 by the end of the year. In contrast, Bitcoin experienced a -64% decrease during that period. Although Bitcoin has recovered most of its losses from 2022 in 2023, COIN still has a long way to go. However, a rebound of +400% in 2023 indicates the potential for further growth.
Ark Invest Sales
Cathie Wood’s Ark Invest ETFs have been selling Coinbase shares since December 2023, with a total sale value of $25 million. This profit-taking strategy is likely due to the significant increase in COIN’s price last year. Despite the sales, Coinbase remains the main asset of Ark’s ETFs in terms of market value.
By monetizing their purchases made at the end of 2022 and the beginning of 2023, Ark Invest is taking advantage of the price surge from below $60 to above $150 per share. The number of shares currently owned by Ark Invest’s ETFs is similar to that of November 2022, indicating their strategic profit-taking approach.
The Success of Coinbase and COIN Stocks
Coinbase’s success as a publicly traded company can be attributed to its role as a custodian for important crypto ETF managers. For instance, BlackRock has chosen Coinbase as the custodian for its Bitcoin ETF. This decision may have positively influenced COIN’s stock price in recent months, resulting in a gain of over 200% since the announcement.
Today, Coinbase is more than just an exchange; it offers various institutional-level crypto services. While it may not dominate the exchange market volume-wise, it has the potential to become a leading provider of institutional-level crypto services. The success of Coinbase on the stock market in 2023 can be attributed to its expansion beyond being just an exchange.
Hot Take: A Challenging Start for Coinbase in 2024
The beginning of 2024 has posed challenges for Coinbase stocks on the market. The drop in Bitcoin’s price and false news regarding SEC decisions have impacted the value of COIN shares. Despite these setbacks, 2023 was a highly successful year for Coinbase, with significant growth in stock prices. As Coinbase expands its services beyond being just an exchange, it has the potential to become a leading provider of institutional-level crypto services. While the start of 2024 may not be favorable, the future remains promising for Coinbase in the stock market.
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