Coinbase (COIN) Stock Price Forecasts 2024, 2025, 2030

What is Coinbase (COIN)?

In short, Coinbase is a cryptocurrency exchange where you can purchase popular cryptocurrencies like Bitcoin, Ethereum, and Solana. Despite not supporting every coin, Coinbase supports more than 120 different types of cryptocurrencies. In the meantime, there are thousands of different cryptocurrencies available around the world.

Coinbase also allows you to convert cryptocurrencies, as well as send and receive cryptocurrency. You can check the current price of cryptocurrencies, view your portfolio, and see news stories about the industry on Coinbase, similar to stock trading apps you may already be familiar with.

As a result, Coinbase is a good place for new crypto investors to buy and sell their favorite cryptocurrencies.

The company is now exploring expanding to Europe, broadening its scope and expanding operations beyond its home country.

It’s currently working on registering in markets including Spain, Italy, France and Netherlands. The exchange has a presence in the U.K, Ireland and also Germany but wishes to expand to Spain, Italy, France, Switzerland and Netherlands.

Coinbase plans to hire managers for its European operations. Furthermore, the company has prioritized "mission-critical roles" in fields like security and compliance after experiencing rapid growth.

Due to the recent market crash, Coinbase has also been looking for acquisition opportunities. The exchange also has been impacted by the crypto winter.

As part of its preparations, the crypto exchange company is working on meeting the requirements of the European Union's Market for Crypto Assets (MiCA).

In other words, this legislation is going to help smooth out distributed ledger technology (DLT) as well as crypto asset regulation that will protect investors and customers. Additionally, Coinbase is in the process of obtaining approval under anti-money laundering rules in several countries, including France.

In addition, Coinbase is looking to keep up with its competitors, which are gaining a lot of popularity in different parts of the world. FTX and Binance have licenses in the Middle East. Coinbase is also seeking permission to operate in European nations, following the footsteps of Binance in France and Italy.

What Influences COIN Price?

Quarterly Report Data

Stock prices can rise when a stock's performance and earnings are on an upward trend. A positive earnings report could also result in a stock price fluctuation or even a fall in market value.

In addition to positive earnings, a company's stock price can fluctuate if it revises its outlook on future earnings or doesn't provide forward earnings guidance or its own expectations. Stock prices could be dampened if investors see this as a red flag and sell.

Dividend Yield

The dividend yield of a stock like COIN can also affect its price. An investor’s total dividend stock return consists of the increase in stock prices plus dividends paid by companies on your shares of their stock. When stock prices rise and dividends remain steady, investors profit.

When a company reduces its dividend, its stock becomes less attractive to investors. This will result in a drop in the stock price. A shareholder who owns this stock will not only receive a lower dividend, but also see their shares fall in value. Even a hint of a dividend reduction can cause an investor's stock price to drop due to the fast reaction of the market to dividend changes.

Stocks become more appealing to buyers when dividends increase. Due to the increased demand, sellers will raise their prices to gain more profit. Dividends on this dividend stock will increase as the share price rises.

Generally, investors consider rising dividends a sign that a company is doing well. It is important to ensure that the company issuing the dividend stock reports increasing profits as well as an increase in dividends. If companies raise their dividends without increasing profits, their stock will look more attractive, but those companies may not be able to pay the increased dividend over time.

Federal Legislation

Federal laws can also affect the prices of a stock, depending on which industry that legislation is aiming to regulate or change. As an example, United States President Biden urged the government to examine cryptocurrency risks and benefits through an executive order.

A comprehensive set of measures will be implemented in six key areas:

As a result of illegal activity and failure to protect consumers, various cryptocurrency exchanges have been fined and punished. Coinbase, for instance, found itself in legal trouble with the U.S. Securities and Exchange Commission (SEC), though it escaped punishment. Earlier this year, the SEC threatened Coinbase with legal action over a cryptocurrency interest product. Subsequently, the service was dropped by the company.

As a result of the news regarding Coinbase being investigated by the SEC for offering unregistered securities, the platform's shares fell more than 21%.

H3 Mergers and Acquisitions (M&A)

When a company acquires or merges with another company, this can affect stock price as well. Generally, the stock price of an acquiring company falls since it has to pay a premium to the target company by using cash reserves or incurring debt to finance the acquisition.

However, acquisitions tend to increase the stock prices of the target company, i.e. the company being acquired. To acquire a company, the acquiring company must pay a premium. Due to the impending acquisition deal, listed stocks of the target company tend to spike up for a short period of time.

Coinbase has acquired 10 companies, eight of which have been acquired in the last five years. There have been Coinbase acquisitions in two different U.S. states, and five different countries. Financial services (10%) and internet software and services (80%) are the exchange's most targeted sectors.

The acquisition of Xapo's institutional business by Coinbase raised Coinbase's position in the global crypto market.

FED Monetary Cycles

In response to the Federal Reserve raising interest rates, stock prices fluctuate. The Fed raises interest rates to cool things down when inflation runs too hot or asset bubbles get out of hand.

There’s a ripple effect throughout the entire economy when interest rates rise. Loans for mortgages, cars, and businesses become more expensive, which slows down cash flow. As a result, businesses may amend or pause growth plans.

The stock market can be influenced by higher interest rates, especially in times when stocks have experienced double-digit returns for a few years. This type of investor decision can lower stock prices individually, if not across major market sectors.

Risk Appetite

An investor's risk appetite, or risk tolerance, is how much risk they’re willing to take given the volatility in the value of their investments. Stock prices have increasingly been attributed to investors' attitude toward risk. Financial stability and risk are harmed by investors shifting their attitudes towards risk, or reducing their appetite for risk. This may correlate with rising or falling stock prices and other financial assets.

When market returns increase, risk tolerance tends to increase. When market returns decrease, risk tolerance tends to decrease. When people change their risk tolerance in this manner, they’re likely to invest in stocks when prices are high and sell when prices are low.

The market for stocks like Coinbase is highly volatile, making it a risky instrument for investors. This is because Coinbase is a cryptocurrency exchange, and crypto assets are known for being volatile—often more volatile than other financial instruments. Therefore, their risk appetite is fairly high, which could in turn, affect the price of Coinbase’s stock.

Coinbase Stock Forecasts 2024

Coin Telegraph has a fairly optimistic outlook for Coinbase’s future stock price. A mix of technical and fundamental indicators suggest that COIN stock can reach $160 by the end of 2023, according to the website.

Jim Chanos, a well-known investor, believes Coinbase's stock price will continue to fall due to increased competition and shrinking revenue in the year ahead, possibly as low as $23.

Is Coinbase Stock a Buy?

In April, Coinbase began trading on the NASDAQ stock exchange at a launch listing price of $250 per share, peaking at $429.54 before closing at $328.28. It’s the largest cryptocurrency exchange in the United States.

Coinbase’s partnership with investment firm BlackRock may signal an optimistic future for the crypto exchange. Institutional investors will now have the option of investing in cryptocurrencies through Coinbase thanks to the partnership. Stock prices of Coinbase soared upwards during intraday trading after investors heard the news of the partnership.

Despite Coinbase's deep 73% discount from its all-time high, BlackRock is taking a giant leap into crypto, and specifically the digital trading exchange. Crypto-related stocks could reach a higher low as a result of this, signaling an excellent entry point for seasoned investors.