This week, Coinbase (COIN) shares attracted attention by reaching a three-year high in a massive rally triggered by the Bitcoin rally following Donald Trump’s election victory.
The rapid rise in COIN stocks, rising above $330, occurred in parallel with Bitcoin’s rise above $93,000 and coincided with the general growth in the cryptocurrency markets.
These extraordinary market movements have analysts speculating about the potential for COIN stocks to surpass their all-time highs.
Coinbase shares hit their highest level since 2021 earlier this week, topping $330. This surge came after Donald Trump won re-election, which many analysts believe is a sign that cryptocurrencies will face more favorable regulatory conditions. This optimism has also led to a significant rally in Bitcoin, pushing its price above $93,000. With Bitcoin having surpassed its pre-election highs, investors are now wondering if COIN shares will break through its all-time high of $357.
In light of recent developments, analysts are cautiously optimistic about COIN stocks. The average price target for COIN over the next 12 months is set at $250.31. However, while nine analysts recommend buying the stock, optimism remains limited due to market volatility and regulatory uncertainty. Some experts emphasize that reaching new highs will largely depend on the government fulfilling its commitments regarding cryptocurrency regulation.
Experts say that the future growth of COIN will depend on the regulatory framework that the new administration will set for the crypto industry. Potential changes by regulators like the SEC could have a major impact, especially in critical areas like crypto asset custody rights and Bitcoin mining regulations in the US. The ability to self-custody digital assets is critical for wider adoption and investor confidence.
Although the cryptocurrency market has been a favorable environment for Coinbase, the company is facing increasing competition. New reports show that Coinbase’s share of the U.S. market fell from 54% to 41% in September. This could test Coinbase’s competitive advantage as traditional financial institutions expand their crypto offerings. Platforms like Robinhood have the potential to lure users away from Coinbase by offering staking services for major tokens and supporting more cryptocurrencies.
The post-election rally has led to a nearly 400% increase in trading volume for Coinbase, with nearly $11 billion worth of transactions in just 10 days, reflecting a strong retail trading environment. Analysts suggest that a more favorable political climate could encourage retail investors to delve into a wider range of cryptocurrencies, which could lead to increased revenue for Coinbase from trading fees.
