While some might have thought that the recent issues surrounding Binance might have disabled faith in cryptocurrency and cryptocurrency stocks, that doesn’t seem to be the case. At least, certainly not for Coinbase (NASDAQ:COIN), who added over 4% in Monday afternoon’s trading amid a growing resurgence in cryptocurrency.
It started as Brian Armstrong, Coinbase’s CEO, went on a bit of a charm offensive, noting that the recent enforcement actions against Binance would “…allow the crypto industry to turn the page” and try to carry on. It would also likely help restore confidence in the sector, which was likely lagging in the face of such an unresolved matter. But with regulators not asleep at the switch, there should be more confidence in those who survived the blow, like Coinbase. Armstrong also noted that, with regulators clearly involved, that should also help spur investment from institutional players, not just in cryptocurrency, but in those who are making it and its infrastructure happen.
The Numbers Speak (Somewhat) for Themselves
It would be easy to brush aside Armstrong’s remarks as feel-good CEO drivel of the kind that CEOs have been engaging in for decades. But a new report from CoinShares noted that digital asset investment funds—the kinds that would handle cryptocurrency—saw $346 million come into their collective control last week. That’s ahead of a likely spot bitcoin (BTC-USD) fund to come. What’s more, this is the ninth week in a row that money has been coming into such funds, suggesting that, indeed, confidence may be on the rise.
What is the 12-Month Forecast for Coinbase Stock?
Turning to Wall Street, analysts have a Hold consensus rating on COIN stock based on seven Buys, six Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 182.03% rally in its share price over the past year, the average COIN price target of $89.56 per share implies 25.59% downside risk.
