Coinbase COIN Rallies 49.7% in 24 Hours Reaching Highest Level Since May 2022 – Bull Market Starting?

Jimmy Aki
Last updated: | 2 min read
Coinbase
Source: Adobe

Coinbase is experiencing a swift turnaround in its fortunes following a significant rally in its stock price.

Listed on the Nasdaq trading floor, the COIN stock price has rallied over 49%, according to data from TradingView.

The crypto-backed stock started November at $77 but has since skyrocketed to $115.93 in the last 24 hours.

This strong bullish momentum is the highest price COIN has attained since May 2022, after which the nascent crypto market went into a year-long bearish run.

COIN
Source: Trading View

COIN has since rallied above its 50-day moving average (MA) price of $82.42; its 200-day MA price of $72.62 is also positively bullish.

The stock has also broken into the overbought zone in its relative strength index (RSI) following a figure of 82.83.

Despite these gains, COIN’s current price remains substantially lower than its 2021 listing price. The exchange’s stock reached an all-time high (ATH) of $350 before experiencing a significant decline in early 2022 due to industry-wide market downturns.

Now, COIN is looking to make a comeback given its key role in the ongoing race for a spot Bitcoin exchange-traded fund (ETF) approval for several legacy-based asset management firms.

Major investment giants, including BlackRock, Ark Invest, Grayscale, WisdomTree, Valkyrie, and Fidelity, have submitted spot Bitcoin ETF applications to the US Securities and Exchange Commission (SEC).

A common factor among all applicants is the inclusion of Coinbase as a custodian for their Bitcoin holdings.

A spot Bitcoin ETF essentially provides a secure avenue for mainstream investors to enter the crypto space through traditional financial and regulated entities, mitigating concerns about crypto scams and fraudulent activities.

While this is not the first attempt at a spot Bitcoin ETF filing, the SEC, led by Gary Gensler, has consistently rejected such proposals, citing concerns about market manipulation, inaccurate data curation services, and a lack of robust investor protection mechanisms.

However, market analysts suggest a significant shift, estimating a 90% chance of SEC approval for a spot Bitcoin ETF early next year.

Bloomberg’s ETF analyst, James Seyffart, predicts that a Bitcoin spot ETF could hit the market as soon as January 2024.

Binance’s Bitcoin Reserves While Coinbase Surges


Coinbase has recently emerged as a winner on multiple fronts. According to data from CryptoQuant, Binance’s Bitcoin reserves dropped to 5,000 BTC, while Coinbase’s holdings surged to 12,000 Bitcoins within a short timeframe.

CryptoQuant attributed these changes to retail outflows directly shifting from Binance to Coinbase Pro, signaling a noteworthy transformation in the dynamics of crypto leadership.

Offering insight into these developments, CryptoQuant stated that many institutional players are opting for the Coinbase platform for trading and asset custody.

This shift is attributed to Coinbase’s Nasdaq listing and robust regulatory coverage, providing a secure haven for investors to protect against any shortfall.

The Binance exchange was recently fined $4.3 billion by four US government agencies, including the Department of Justice (DoJ), Commodity Futures Trading Commission (CFTC), and two others.

The charges bordered on money laundering and violations of sanctions. As part of the settlement, Changpeng Zhao stepped down as CEO.