Why Coinbase Stock Is Moving Monday

Coinbase Global, Inc. COIN shares are trading higher Monday as shares of several crypto-related stocks move higher amid a rise in the price of Bitcoin. 

The Details:

Coinbase shares are up 48% in the past month as the recent rally in Bitcoin continues. Bitcoin has climbed following the approval of several spot Bitcoin ETFs in January as institutions make large purchases and acceptance of the cryptocurrency grows. Investors may also be looking forward to the next Bitcoin halving event, likely to occur in mid to late-April. 

Coinbase reported massive outflows of Bitcoin last week, leaving the exchange with 390,000 Bitcoins, or about $20 billion. The outflows are most likely the result of funds being moved to set up new custodial wallets or provide funding for OTC transactions.

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COIN Stock Forecast 2030:

Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.

If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.

For Coinbase Global, over the past 5 years, it's annualized stock performance is -12.75%, and if you assume that trend continues for another 5 years, you can expect a stock to trade at $93.82.

Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.

COIN Price Action: According to Benzinga Pro, Coinbase Global shares are up 12.3% at $186.44 at the time of publication.

Image: Pete Linforth from Pixabay