If you have not been following coinbase, the stock has risen over 90% this week. Being exposed to digital assets, it's stock price volatility is pretty much tied to the volatily of cryptocurrency.
In the past couple of weeks, cryptocurrency especially the big boys like Bitcoin and Etherum have risen significantly and were found to be in the overbought territory a couple of times. This could be one of the reasons why there is a positive push on the Coinbase stock price this week. Also, it seems like the stock is likely to be experiencing a short squeeze in the past week, hence the huge spike in price.
However, if you are deciding to open a position in coinbase, nothing has changed fundamentally. We are still far off from the last peak of BTC or ETH. There is no clear signs of exiting the crypto winter, so do invest with due dilligence.
Crypto stocks are not for the faint-hearted ~
@Daily_Discussion@TigerStars@CaptainTiger
Comments
Very volatile