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As far as Coinbase stock is concerned, the outlook for 2023 and long-term growth is very gloomy.
Dear Readers Welcome to another chapter of the Coinspeaker Advent Calendar Coinbase Global Inc (NASDAQ: COIN ) in 2023.
Coinbase is one of the most notable digital currency trading platforms in the US and around the world. According to According to data from CoinMarketCap, Coinbase currently has an average daily turnover of $1.9 billion, trailing only Binance Exchange in terms of recorded transaction volume.
Coinbase Exchange and its shares offer many benefits to Wall Street, including a potential mechanism for trading cryptocurrencies in a regulated manner. Coinbase also offers a robust crypto custody service to help institutional investors protect their assets. Additionally, Coinbase stock has been an important way for corporate buyers to gain exposure to the broader digital currency ecosystem.
Coinbase was founded in 2012 by Brian Armstrong and Fred Ersam and over the years, they helped pioneer the growth of the industry as a whole. The model displayed by Coinbase has been copied by many competitors over the past year and according to the general outlook of the industry, Coinbase stock is now following the market trend in all aspects.
This implies that during periods of crypto market boom, the chances of COIN rising are very high and when there is a liquidity crunch in the market, the stock price will always take a sluggish fall.
Coinbase (COIN) stock history
Coinbase operated as a privately held company for the better part of its existence, and it went public via a direct listing in April 2021. The company’s stock hit an all-time high (ATH) of $429.12 on the Nasdaq Global Select Market. With its impressive debut as a publicly traded company, Coinbase was at one point high Valuable than Intercontinental Exchange Inc (NYSE: ICE).
Coinbase’s launch coincided with an era of crypto market boom that saw Bitcoin (BTC) increased its ATH to over $68,000 in November last year. Since that time, COIN stock has fallen by more than a mile and the high-growth stock that Best Investors is happy with is now trading at $36.60.
Expectations on Coinbase Stock for 2023
As far as Coinbase stock is concerned, the outlook for 2023 and long-term growth is very gloomy. According to analysts at Atlantic Securities Projects, the stock will range from $67 to $46 in 2023. This rating is quite favorable considering that analysts at other leading investment banks have given lower ratings to tech stocks.
The outlook for the stock continues to decline after it reported three consecutive quarters of losses this year after it shared its performance report. The company reported a loss of $429 million in Q1. About $1 billion in Q2, and more than $540 million in Q3, showing that the business is nowhere near profitable.
Continued macroeconomic headwinds and declines in crypto liquidity fueled by the FTX bankruptcy continue to dampen the overall outlook for the company’s stock. Overall, we expect Coinbase to be a viable investment for the long term, given its aggressive business diversification strategies.
For our readers looking to support Coinbase in the coming year, caution and risk management are advised. Stay tuned for other episodes of this Coinspeaker Advent series.
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