Analyst Claims Coinbase Stock Might Face Near-Term Unpredictability
Owen Lau, Oppenheimer analyst, mentions the price of Bitcoin, the result of the SEC case, and overall crypto sector health as critical factors for Coinbase’s stock price.
An analyst for Oppenheimer, an investment bank, claims that the current lawsuit with the U.S. securities regulator and an expected reduction in Bitcoin’s price might result in Coinbase’s stock price experiencing near-term volatility.
SEC Case Affects Coinbase Stock Prices
In a recent interview, Owen Lau, an Oppenheimer analyst, noted that the current legal unpredictability for Coinbase might mean that its stock, whose present price is $125, might experience price fluctuations in the future.
The uncertainty is linked to its case with the United States Securities and Exchange Commission (SEC) claiming it violated security guidelines. A regulatory overhang still exists, and vivid regulations in the U.S. are nonexistent.
Nevertheless, Elliot Stein, a litigation analyst, disclosed his confidence that Coinbase would get a total dismissal of its case against the Securities and Exchange Commission. He envisaged a 70% probability of the firm coming out of the legal proceedings unharmed.
Lau’s expected price changes for Coinbase stock responded to its latest drop of nearly 28% over the past month. Nevertheless, it has witnessed an estimated 67% in the previous three months.
Analysts Project Bitcoin Prices to Increase in Q4 of 2024
According to Lau, the overall rise in Bitcoin’s price towards the end of last year is linked to rising confidence in the United States Securities and Exchange Commission sanctioning a spot Bitcoin exchange-traded fund (ETF), which happened on January 10.
Nevertheless, over the past two weeks, the price of Bitcoin has fallen nearly 10.37% after the ratification of spot Bitcoin ETFs by the SEC. Concerning the price of Bitcoin, Lau also expects it to encounter short-term variations.
He noted that in the near term, downward trajectory on Bitcoin until the “next catalyst” is an impossibility. On January 23, a digital media resource revealed JPMorgan’s demotion of Coinbase’s stock to an ‘underweight ranking.’
Bitcoin’s plummeting price and the approval of spot Bitcoin ETF shares were mentioned as the reasons for the downgrade.
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