What is the reason behind 90% increase in Coinbase stock coin price ?

[krishnaverma]

On Dec 2022, COIN's market value was $32 and on Jan 27, 2023, it is $61.47. What is the reason behind this 90% increase in price in your opinion. I also checked recent news related to Coinbase exchanges and could not find anything favorable. On the other hand, they are having all sort of issues which should have caused a decline in the stock coin price.

Like they laid off 20% of the staff in January this year.
https://cryptoslate.com/coinbase-lays-off-950-employees/

They also then shut down operations in Japan recently.

Then what is causing this reverse action ? Is it kind of trap by whales to dupe innocent investors and then dump the coin ?

[Edwardard]

By applying simple TA here on COIN, you must have noticed a strong bullish divergence in its market structure in the weekly timeframe[1]. Shorts were not recommended after such drastic falls back to back already.
Also, BTC was very favourable in this month, since coin is related to crypto, it will rise when btc rises. News is not everything. If so, btc could have never recovered after the ftx meltdown
[1]
 

[Husires]

Like they laid off 20% of the staff in January this year.
https://cryptoslate.com/coinbase-lays-off-950-employees/

In the stock market, layoffs are a green signal. Stockholders like layoffs because it means that more money will go to them instead of being deducted in the form of salaries, incentives, etc. And as long as the platform is working well, this means that the 20% of the employees were not really needed.

They also then shut down operations in Japan recently.

This may be read as positive news, even though it appears to be negative.

On Dec 2022, COIN's market value was $32 and on Jan 27, 2023, it is $61.47. What is the reason behind this 90% increase in price in your opinion. I also checked recent news related to Coinbase exchanges and could not find anything favorable. On the other hand, they are having all sort of issues which should have caused a decline in the stock coin price.

You do not need a reason to pump and dump any coin and they can take advantage of the liquidity they obtained from laying off employees in stock purchases, which may push more investors when they see that the price is going up.

One month's data will not give us detailed information that we can use, so you have to wait for several months and then your question will be logical.

[PX-Z]

Also, BTC was very favourable in this month, since coin is related to crypto, it will rise when btc rises.

This. Aside from coinbase's internal regards, coinbase's coin can be benefit from the crypto's movement particularly on bitcoin, it's a one way connection. But bitcoin won't benefit or get affected when coinbase or its coin have prices changes not unless they were hacked, considering they have millions on their stack.

[Odusko]

Also, BTC was very favourable in this month, since coin is related to crypto, it will rise when btc rises.

This. Aside from coinbase's internal regards, coinbase's coin can be benefit from the crypto's movement particularly on bitcoin, it's a one way connection. But bitcoin won't benefit or get affected when the coin base or its coin has price changes not unless they were hacked, considering they have millions on their stack.

The surprising thing with cryptocurrency is that only Bitcoin is the determinant coin to the rest of the other altcoins and its chains of supply, and bitcoin does not rely on the news for its market mode determination in terms of price and volume.
Bitcoin then all the other coins have shown a higher level of x movement in the short while due to the small market supply and value, but one should also note that.
When the market goes the side way its impact could be massive on those coins as compared to Bitcoin on the other hand, so investors should be prepared to take profits at regular intervals.

[The Sceptical Chymist]

By applying simple TA here<snip>

Gah!  I don't believe in TA, but if I recall correctly Coinbase stock fell off a cliff after a piece of news came out--and I'll be damned if I can remember if it was an earnings forecast or report or if it had something to do with bitcoin's price plopping in the shitter for a while.

But just like Meta, Coinbase rebounded.  We're still in a serious bull market as far as stocks go, and when prices are sky high and there's a lot of speculation going on, any news or even rumor can cause a massive swing in a stock's price.  That's been true of every raging bull market, and I think that's because everybody is waiting for the crash to come.

So COIN is back to being an overvalued stock.  That shouldn't be too surprising given that the stock of every company that has business in the crypto space is sensitive to bitcoin's price, and bitcoin just rebounded big time.  If it fell back to $16k tomorrow, I bet COIN would get hit pretty hard.

[buwaytress]

So COIN is back to being an overvalued stock.  That shouldn't be too surprising given that the stock of every company that has business in the crypto space is sensitive to bitcoin's price, and bitcoin just rebounded big time.  If it fell back to $16k tomorrow, I bet COIN would get hit pretty hard.

I know it's facetious but I've been looking at crypto companies stocks as altcoins. They rally harder than Bitcoin when it's bullish, they crumble harder when Bitcoin's down.

I'd say it's a long way off from being correctly valued, but then I don't know anything about stocks nor of Coinbase profits, but it still doesn't agree with my logic that Bitcoin's performance should affect stocks of companies that should be valued based off their performance. I suppose revenue just doesn't work the way it should with crypto companies.

[bitmover]

On Dec 2022, COIN's market value was $32 and on Jan 27, 2023, it is $61.47. What is the reason behind this 90% increase in price in your opinion. I also checked recent news related to Coinbase exchanges and could not find anything favorable. On the other hand, they are having all sort of issues which should have caused a decline in the stock coin price.

Like they laid off 20% of the staff in January this year.
https://cryptoslate.com/coinbase-lays-off-950-employees/

They also then shut down operations in Japan recently.

Then what is causing this reverse action ? Is it kind of trap by whales to dupe innocent investors and then dump the coin ?

If you look carefully, it is still -75% in a year, it was near 200 USD 1 year ago, and much lower than the 340 USD starting price.



I believe it is somehow correlated to bitcoin price and correlated to some good news regarding interest rates, which may go down sooner than expected. As bitcoin is performing really well this year, COIN is also expected to do so.

[tabas]

I thought that there has something to do with the email they've sent for all registers that they've got since I've received one. Because I only just looked at the title but didn't opened and there's the title "global" so I assumed that it's related to it but, it doesn't have since it's just all about data collection and new laws that they've got under the laws of United States. Honestly, if looking at the timeframe when COIN was launched, its launching price was $342 and then now, it's $61 gone down to $56.16. But anything that's related to bitcoin just as said by Edward, since it has gone up then that means that everything that's related to it might also increase.