Key Takeaways

• Despite momentarily being down, COIN price has all the conditions to rise again and is, therefore, considered as ‘HOLD’ option
• Coinbase has been declared as the exchange that would serve as a surveillance-sharing partner on almost all re-filled ETF applications
• Analysts’ long-term price forecast says that Coinbase (COIN) could reach $257.73 by 2025

After Piper Sandler recently downgraded the Coinbase stock  (COIN) and claimed that, despite the recent market bounce following the SEC’s action against the company, the increase in crypto prices hadn’t been accompanied by an increase in trading volume, the shares of the crypto services provider plummeted more than 2%.

The company anticipates Coinbase publishing its third-quarter trade volumes and monthly transacting customers at their lowest levels in over two years.

Speculating On SEC’s Decision

However, this doesn’t mean Coinbase is over. Recently,  Coinbase has seen a dramatic increase in market value as a result of rumors that the U.S. Securities and Exchange Commission (SEC) is about to make a significant decision.

The rumor about the SEC’s impending ruling has been making the rounds in the cryptocurrency community. While the contents of the potential ruling are yet unknown, it is anticipated to have significant effects on the digital asset market, particularly on the value of well-known cryptocurrencies.

Following the publication of this news, Coinbase’s value sharply increased. The well-known cryptocurrency exchange, known for offering a wide variety of digital assets, has seen the value of its stock soar. The market’s speculation regarding the upcoming SEC judgment and its potential effects on the larger crypto ecosystem caused the price to increase.

CBOE , BlackRock, and Valkyre Name Coinbase as Surveillance Partner

The largest asset manager in the world, BlackRock, re-filed its application for a spot Bitcoin ETF on July 3, according to Nasdaq.

A “surveillance-sharing agreement” with  Coinbase was one of the newly disclosed information.

Let’s not forget that the increase in price also happened after the report that exchange operator Cboe Global Markets resubmitted its application for a spot Bitcoin exchange-traded fund (ETF) a few days ago.

Cboe’s proposal, submitted on behalf of financial behemoths BlackRock and Fidelity, was previously turned down by the U.S. Securities and Exchange Commission (SEC) because it was vague and difficult to understand.

The spot-Bitcoin exchange-traded fund application from Valkyrie Investments has been resubmitted, and Coinbase has been identified as the exchange that will act as its surveillance-sharing partner.

All of the most recent SEC-returned applications have been revised and resubmitted as a result of Valkyrie.

Coinbase Vs. SEC In Short

The U.S. Securities and Exchange Commission filed a lawsuit against Coinbase on June 6. The federal authority then claimed that Coinbase used its crypto asset trading platform as an unlicensed national securities exchange and broker.

The SEC also claimed that at least 13 crypto assets, including the tokens for Solana and Cardano, that Coinbase made available to consumers fall under the definition of “crypto-asset securities,” as stated in the complaint.

The SEC claims that Coinbase’s staking program is both an investment contract and an unregistered securities since it allows cryptocurrency investors to “earn financial returns through Coinbase’s managerial efforts.”

Brian Armstrong, co-founder and CEO of Coinbase, stated in a tweet  after the SEC’s statement that, in part, “Regarding the SEC complaint against us today, we’re proud to represent the industry in court to get some clarity around crypto rules finally.”

The lawsuit is still ongoing as the commission examines the latest ETF application involving Coinbase.

Since then, Coinbase has submitted a request to dismiss the SEC’s complaint, claiming that the agency lacks jurisdiction and that its transactions do not meet the definition of securities.

COIN in the Next 5 Years

Coinbase became the first cryptocurrency platform to go public and offer its shares on a stock exchange in the spring of 2021, and the price of COIN stock has been steadily declining since then. The stock price fell more than six times after hitting its all-time high at about $430. According to some analysts , purchasing Coinbase (COIN) stock when it is at its lowest price could be a wise long-term investment.

The company stock enjoyed a strong run as the crypto markets stabilized in 2023. Compared to crypto markets, which have increased by about 52% over the same period, COIN has increased by 140% from the year’s beginning.

At the time of writing, the price was down  by 1.10% in pre-market and stood at $77.50.

What Will COIN Price Be In 2023?

The market trend can be seen in the price of Coinbase (COIN). The quotes suffered as a result of the market cap decline and reached record lows. The stock price could still tumble further, according to analysts. At the same time, the price can eventually revert to its level in 2021.

What Will COIN Price Be In the Next Five Years?

The stock price’s primary element is the cryptocurrency sector’s growth. The number of active users, the number of long-term investors who have cryptocurrencies in their accounts, and the volume of trading all affect the exchange’s profits. Coinbase and other exchanges experienced a significant outflow of client funds following the collapse of FTX, one of the Top 5 exchanges, which had an effect on the stock price. As long as the Bitcoin market cap is at its lowest, the price of Coinbase will keep dropping.

According to the analysts, the long-term price forecast Coinbase (COIN) could reach $257.73 by 2025, $1316.77 by 2030, $2264.9 by 2034.

Important Variables Affecting Coinbase’s (COIN) Stock Price

• Financial metrics, such as sales, net income, EBITDA, and other metrics and multipliers, show how competitive the market is.
• Crypto market situation. Cryptocurrencies are quickly becoming recognized as valuable investments. The primary factor influencing market expansion and, consequently, the increase in the price of Coinbase will be regulators’ acceptance of them as full-fledged financial instruments alongside fiat money and securities.
• Security of the platform. Official claims claim that 98% of user funds in USD are kept in cold wallets, and FDIC insurance covers customer funds. Up to USD 250,000 in insurance coverage is available. However, the exchange has been compromised more than once.
• Confirmation of reserves and liquidity. Increased user confidence and evidence of liquidity on the exchange have a beneficial effect on stock price.

The stablecoin USDC is available on Coinbase. The success of its use in exchange for fiat money in financial transactions may indirectly affect the stock price.

Beyond Coinbase’s Impact

Despite the fact that Coinbase is in the news right now because of its recent price swings, the probable regulatory ruling may have effects on more than just this one company.

The SEC’s judgment is expected to impact other cryptocurrency exchanges and the larger crypto market, demonstrating the broad regulatory body authority over this developing industry.

In conclusion, speculation over the impending SEC judgment has already begun to affect the cryptocurrency market, as shown by the rise in Coinbase’s value. Regulatory changes can have a substantial impact on the value of cryptocurrencies and the functioning of crypto exchanges as the world waits for this potentially game-changing decision.