Is it time to buy Coinbase as Bitcoin fell below USD65,000?

🌟🌟🌟Bitcoin fell below USD 65,000 today to USD 64,680.44.  This is the first time it dipped below USD 65,000 threshold since May 16.  This could be due to the slowing down of global economy, geopolitical tensions and the markets are slower during the summer months.  Bitcoin has been wrestling with the USD 70,000 threshold since its March 14 record of USD 73,797.68.  It last tested that level in early June.  

$Coinbase Global, Inc.(COIN)$ 

one of the world 's largest Cryptocurrency exchanges also fell.  It dropped 3.7% today and in the past 5 days, Coinbase is down 6.2%.  However Coinbase is still up 50% year todate.  In 2023, Coinbase has skyrocketed a massive 313%!

Coinbase' s Q1 24 earnings on May 2 showed revenue has risen 112% year over year to USD 1.64 billion. It beats analysts' expectations by USD 300 million.  Its Earnings per share of USD 4.40 also exceeded analysts' forecast of USD 3.33 and improved from its net loss of 34 cents per share a year earlier. 

For the 2nd quarter of 2024, Coinbase expects its subscription and services revenue to grow 57% to 79% year over year.  For the full year, Analysts expect Coinbase revenue to rise 77% to USD 5.5 billion, its adjusted EBITDA to jump 181% to USD 2.7 billion and its adjusted EBITDA margin to rise to 49%.

Wall Street Analysts are bullish on Coinbase with a Buy rating, Target price of USD 260, an upside potential of 10%.

Another potential catalyst for Coinbase is the imminent approval of Spot Ethereum ETFs.  According to Eric Balchunas, senior ETF Analyst at Bloomberg, July 2 could be the fateful date.  The approval of Ethereum ETFs could attract a significant influx of capital as well as bolster the credibility of Cryptocurrencies. 

Coinbase has a dominant position in the custodianship of Bitcoin ETFs and may also be the key custodian for Ethereum ETFs too. 

I am bullish on Coinbase as I believe it still has lots of exponential growth ahead.  The growth of  Cryptocurrencies are still at its nascent stage and approval in Spot Bitcoins ETFs  and Ethereum ETFs could accelerate the global adoption of digital assets, driven by increased investor confidence and continued innovation in this sector. 

Is Coinbase a Buy?  I believe so.  As Warren Buffett likes to say When there is fear in the markets it is time to be greedy. 

Exciting times are ahead for Coinbase! 

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