Coinbase Stock Hits New High, Up 5.5%

Coinbase stock has recently gained significant attention as it closed at a new high on Thursday, June 26, with a closing price of $375.07. This marks a notable increase of more than 5.5% for the day, and the stock has also touched its all-time high in the prior session. The 52-week high and low of the crypto stock were recorded at $382 and $142.58, respectively. Over the last 30 days, the $94.9 billion firm has added more than 40%, while witnessing a year-to-date (YTD) gain of 51%.

Despite this impressive performance, some investors are questioning whether the momentum in the COIN price can be sustained. One of the primary reasons for concern is the recent trading move by Cathie Wood’s Ark Invest, which sold 33,363 COIN shares valued at around $12.5 million. This move has sparked concerns among traders, with some speculating that it could be a profit-booking strategy or a strategic movement by the investment management firm. Earlier this month, Ark Invest sold COIN, HOOD, and other crypto stocks while betting around $373 million into Circle stock, which has also gained notable traction in the market since its debut on the US stock market.

Another factor contributing to the cautious sentiment is the potential for profit-booking by market participants. As the Coinbase stock closed at a new high on Thursday, many traders might be looking to offload at least some of their holdings for profits. While there is no assurance of this move, the recent selloff by Ark Invest has spooked the market participants.

The ongoing volatility in the broader digital assets space might also continue to weigh on traders’ sentiment, impacting the Coinbase stock price. Crypto stocks often tend to move in tandem with the broader crypto market movements. If the digital assets continue to bleed, the crypto stocks might also face the heat.

Despite these short-term concerns, analysts remain optimistic about the long-term trajectory of Coinbase stock. Bernstein analysts have provided a bullish outlook for the COIN price, raising the price target for Coinbase to $510. They also predict Coinbase’s revenue to come in at $14.1 billion by 2027, which has sparked investors’ optimism. However, the pre-market data suggests that market participants might be playing it safe before further cues on the potential future movements of the stock. The stock already went down around 0.6% to $372 before the opening bell today, indicating a cautious approach by investors.