COINBASE(COIN)/BTC Correlation
In the past months investors have been watching carefully the recovery of Coinbase as one of the biggest partners in the financial industry as crytocurrencies seem to recover from the last downturn. Many investors, traders and fans of crypto have been watching with a lot of hype the launch of the ETFs; which hasn't resulted in what most of them expected: a massive bull run as these instruments got green light from public authorities.
Cathie Wood's ARK investment instruments have been continuously dumping Coinbase shares in the last months, possibly to balance the holdings of the ETF ARKW(ark-funds.com/funds/arkw/), and the crypto-exchange shows 2 interesting things: certain degree of correlation with BTC and extraordinary earnings.
However the last earnings should have been fuelling this stock but they didn't due to weaknesses in their fundamentals and tough valuations with shallow price targets. If done carefully, COIN can be used to track small spikes in price and short trends in BTC and ETH. The future could be promising for Coinbase, but from a macroeconomic standpoint we are not out of the woods at all.
My observations tell me that the markets like to be bearish on COIN, but for short term wave riding, it could be worth it - just make sure you have appropriate risk management when doing so.
Cathie Wood's ARK investment instruments have been continuously dumping Coinbase shares in the last months, possibly to balance the holdings of the ETF ARKW(ark-funds.com/funds/arkw/), and the crypto-exchange shows 2 interesting things: certain degree of correlation with BTC and extraordinary earnings.
However the last earnings should have been fuelling this stock but they didn't due to weaknesses in their fundamentals and tough valuations with shallow price targets. If done carefully, COIN can be used to track small spikes in price and short trends in BTC and ETH. The future could be promising for Coinbase, but from a macroeconomic standpoint we are not out of the woods at all.
My observations tell me that the markets like to be bearish on COIN, but for short term wave riding, it could be worth it - just make sure you have appropriate risk management when doing so.
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