Coinbase Stock Is Ripping Higher: What's Going On?

Coinbase Global Inc COIN shares are trading higher Thursday amid a rise in Bitcoin BTC/USD prices.

What To Know: The broader crypto space got a boost from increased demand following the approval of spot bitcoin ETFs in January, but the ETFs reportedly saw their largest single-day outflows on Monday as Bitcoin fell from its highs and sparked a selloff in several crypto-related stocks.

Bitcoin prices are bouncing back Thursday following dovish comments from the Federal Reserve. Bitcoin was up approximately 5% over a 24-hour period trading around $67,104 at the time of writing.

Coinbase is faring better than other crypto-linked stocks this week, likely due to the increased volatility of crypto assets. As a crypto exchange, the company benefits from volatility in crypto as increased price movement often drives more trading activity on the platform.

Coinbase reported strong fourth-quarter financial results last month as transaction revenues jumped 83% quarter-over-quarter, primarily driven by higher volatility and crypto asset prices. Coinbase is not due to report earnings again until early May. Analysts currently expect the company to report earnings of 48 cents per share on revenue of $1.104 billion, according to estimates from Benzinga Pro.

Don’t Miss This: Bitcoin, Ethereum, Dogecoin Rise As Fed Holds Rates Steady: Analyst Says ‘Likelihood’ Of King Crypto Reaching $500K Imminent

Should I Sell My COIN Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Coinbase have gained 311.6% year-to-date. This compares to the average annual return of -7.85%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Coinbase stock currently has an RSI of 61.57, indicating neutral conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

COIN Price Action: Coinbase shares were up 4.7% at $268.99 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Coinbase.