Coinbase, one of the hottest stocks of the past year, still has room to run.
Coinbase Global stock has been one of the top performers of the last 12 months, defying skepticism that it would thrive during a regulatory crackdown on digital assets. Since hitting a low of $46.43 last June, the stock has more than quintupled to $264 as of March this year.
A couple factors are helping drive the gains: The approval of the first exchange-traded funds to hold Bitcoin, a long-sought goal of crypto proponents, as well as a growing belief that institutions and financial advisors are on the cusp of adding digital assets to their portfolios en masse as Bitcoin this year has climbed to fresh records. On March, it traded at about $73,000, up 200% over the past 12 months.
In buying Coinbase stock, investors are making a huge bet that the company can live up to what appears to be an extremely high valuation.
So far this year, all the investment winds seem to be blowing in Coinbase’s favor. But to justify a stock price, alot will have to continue to go right.
Some people have ask me if i will go long on this stock. My answer is, I will short it due to its volatility. The future of crypto is still uncertain. Investing in a company holding crypto as assets is like wearing a newly invented cut resistant glove and testing it with the knife.
Trusting that the knife wouldn't cut through, while the cut resistant glove is just a innovative product in progress. It is not a finished product yet. Just like how the progression of crypto have yet to reach the end, a point of stablity.
When i say 'end' i do not mean it will no longer progress. When i say 'end' i mean that it have reached a point of stablity and certain improvements can still be made.
Invest at your own risk.
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