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The
crypto market, particularly Bitcoin, is stealing the spotlight this fall,
possibly surpassing the popularity of Taylor Swift. Bitcoin ETF discussions are everywhere. Amidst
this, it’s easy to overlook that cryptocurrencies offer profit opportunities in
various markets. Case in point: Coinbase stocks have experienced greater growth
than BTC in the past month. Everything you need to know about this asset is in
this piece.
While
Bitcoin rightfully claims its throne in the market during the latter half of
2023, it’s crucial to note the percentage increase. Bitcoin has risen by
approximately 11% over the past month. And what about Coinbase stock? The
company’s shares have grown by an impressive 75%.
How many
companies boast such statistics? Naming even one is considered an
accomplishment. If you want to stay updated on the daily champion, simply
consult the list of today’s top gainers.
Coinbase’s
progress since the beginning of the year looks almost surreal, with a
staggering +280%. However, it’s essential to recognize the exceptionally high
volatility, as sharp changes can occur in both directions – up and down.
The
primary correlation for Coinbase stock lies with the crypto market,
particularly Bitcoin. When BTC rises, Coinbase follows suit due to its revenue
from commissions. But what’s interesting is that Coinbase stock witnesses even
faster growth than Bitcoin.
In other
words, if you anticipate further growth
in BTCUSD and other cryptocurrencies, considering the same for
Coinbase shares is a viable option.
To
enhance stability and foster predicted growth, Coinbase diversifies its
business. Initiatives include the launch of a platform for derivatives trading
and expansion into new markets like Canada, Brazil, and Singapore. Asset
management is also on the horizon. Despite these efforts, regulatory risks
loom, as evidenced by the SEC troubles faced by Binance, a competitor of
Coinbase.
Despite
diversification efforts and external factors, BTC’s price remains the primary
driver for Coinbase stocks. While it’s possible for Bitcoin to change its
trend, the volatile nature of the crypto market makes it doubly possible. If
such a shift occurs, Coinbase stocks might decline faster than their ascent.
The BTC
ETF plays a pivotal role in influencing Coinbase (and Bitcoin). Monitoring
related news and developments in the crypto industry is essential before making
any trading decisions.