Shares of the cryptocurrency exchange operator Coinbase Global (COIN) gained 9.1% to close at $58.67 on July 18 and continued to gain another 2% during the pre-market session today at the time of writing this article.
A much-awaited resurgence of Bitcoin above the $22,000 mark (BTC-USD) led to the crypto stocks’ rally. Notably, with the recent gains, the market capitalization of Bitcoin sprung back to its highest level over the past 30 days, crossing the $1 trillion benchmark.
Coinbase was not alone and was accompanied by its peers. Marathon Digital (MARA) was the biggest gainer, jumping 21.4% yesterday, followed by Riot Blockchain (RIOT) and MicroStrategy (MSTR), which gained 11.9% and 5.4%, respectively.
Notably, Ethereum (ETH-USD) also gained, closing 18% higher at the $1,578 price level.
Coinbase Wins Approval in Italy
Coinbase also benefited from the news that it has gained approval from Italian regulators to provide crypto services to residents of the country.
The approval in yet another country will help in expanding the company’s global footprint.
In Europe alone, the company has a presence in almost 40 countries and seeks to win approval in many more.
Wall Street Is Cautious about COIN
Following yesterday’s upward swing in crypto stocks, D.A. Davidson analyst Chris Brendler reiterated a Buy rating on the stock with a price target of $90 (53.40% upside potential).
However, the rest of the Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 13 Buys and six Holds. The average Coinbase Global price target of $118.95 implies 102.74% upside potential to current levels.
COIN shares have lost more than 75% of their market capitalization year-to-date.
The company is battling a number of issues that have disappointed investors, including downward earnings per share revisions, the slowdown in growth, losing market share to competitors and recently announced headcount reductions.
The recent rebound in crypto stocks may instill a new lease on life for Coinbase and its peers.