Coinbase stock faces near-term volatility amid regulatory overhang — Analyst

Must read

Tesla missed out on $300M profit after Bitcoin sales

Tesla has refused to "hodl" as its early sales of Bitcoin (BTC) have resulted in a missed opportunity of over $300 million in profits.Tesla's...

U.S. lawmakers propose quick legislation in response to Taylor Swift deepfake

In a statement, X mentioned it is actively removing the images and taking appropriate actions against the accounts responsible for spreading them. ...

Coinbase stock faces near-term volatility amid regulatory overhang — Analyst

Oppenheimer analyst Owen Lau highlights Bitcoin’s price, the SEC lawsuit outcome, and overall crypto industry health as pivotal factors for Coinbase’s stock price....

Bitcoin ETFs are wrapped in ‘thin layer’ of indirect regulations — CFTC chair

CFTC chair Rostin Behnam declared that regulating the cash market for digital assets has “never been more critical” following the approval of spot...

Oppenheimer analyst Owen Lau highlights Bitcoin’s price, the SEC lawsuit outcome, and overall crypto industry health as pivotal factors for Coinbase’s stock price.

2406 Total views

2 Total shares

Coinbase stock faces near-term volatility amid regulatory overhang — Analyst

Coinbase’s stock price may experience near-term volatility due to its ongoing lawsuit with the United States securities regulator, as well as an anticipated decline in the price of Bitcoin (BTC), according to an analyst for investment bank Oppenheimer.

In a recent interview with Yahoo Finance, Oppenheimer analyst Owen Lau outlined that the ongoing legal uncertainty for Coinbase, in relation to its lawsuit with the U.S. Securities and Exchange Commission (SEC) alleging it violated security laws, potentially means that its stock, currently priced at $125, is in for some price fluctuations in the near future.

“There is still a regulatory overhang, we still don’t have a clear regulations in the United States right now.”

However, Bloomberg litigation analyst Elliot Stein recently revealed his optimism that Coinbase will receive a full dismissal of its lawsuit against the U.S. regulator, predicting a 70% chance that the exchange will come out of the legal proceedings unscathed.

Lau’s anticipated price swings for Coinbase stock were in response to its recent decline of approximately 28% in the last 30 days. However, it has seen an overall gain of around 67% in the past three months.

Lau attributes the overall increase to Bitcoin’s price surge toward the end of 2023 due to the growing optimism of the U.S. SEC approving a spot Bitcoin ETF, which occurred on Jan. 10.

However, Bitcoin’s price has dropped approximately 10.37% over the past two weeks following the SEC’s approval of spot Bitcoin exchange-traded funds. At the time of publication, Bitcoin’s price is $41,863.

Oppenheimer analyst Owen Lau on Yahoo Finance. Source: Yahoo Finance

Related: Coinbase addresses Geth dominance concerns with client diversity

As for Bitcoin’s price, Lau similarly anticipates it will face short-term price fluctuations.

“I do think that in the near term there will be some downward momentum on Bitcoin until the next catalyst,” he stated.

On Jan. 23, Cointelegraph reported that JPMorgan also downgraded Coinbase’s stock to an “underweight rating,” citing the falling price of Bitcoin and listing shares of spot Bitcoin ETFs.

Magazine: Coinbase fights SEC in court, SBF’s parents seek lawsuit dismissal, and Bitcoin ETFs: Hodler’s Digest, Jan. 14-20

More articles

Latest article

Tesla missed out on $300M profit after Bitcoin sales

Tesla has refused to "hodl" as its early sales of Bitcoin (BTC) have resulted in a missed opportunity of over $300 million in profits.Tesla's...

U.S. lawmakers propose quick legislation in response to Taylor Swift deepfake

In a statement, X mentioned it is actively removing the images and taking appropriate actions against the accounts responsible for spreading them. ...

Coinbase stock faces near-term volatility amid regulatory overhang — Analyst

Oppenheimer analyst Owen Lau highlights Bitcoin’s price, the SEC lawsuit outcome, and overall crypto industry health as pivotal factors for Coinbase’s stock price....

Bitcoin ETFs are wrapped in ‘thin layer’ of indirect regulations — CFTC chair

CFTC chair Rostin Behnam declared that regulating the cash market for digital assets has “never been more critical” following the approval of spot...

Estonian government will allow extradition of Hashflare defendants

Ivan Turogin and Sergei Potapenko face 18 charges in the United States and long prison terms for allegedly making HashFlare a Ponzi scheme....