Coinbase Stock Soars to ATH—But Here’s Why COIN Could Face a Pullback

Coinbase just smashed records—again. COIN shares hit an all-time high as crypto euphoria grips Wall Street. But don’t pop the champagne yet.

The Bull Case: Riding the Crypto Wave

Exchange tokens are flying, Bitcoin’s flirting with $70K, and institutions are FOMO-ing into spot ETFs. Coinbase? Front-row seat.

The Bear Trap: Four Red Flags

1.
Regulatory Roulette
: The SEC’s lawsuit isn’t going away—just ask Ripple.
2.
Crypto Winter PTSD
: Retail traders still remember 2022’s 80% nosedive.
3.
Competition Heating Up
: Binance.US and Kraken are slashing fees.
4.
The ‘Sell the News’ Playbook
: Even Tesla couldn’t hold ATHs forever.

Bottom Line

This isn’t financial advice (but if it were, we’d say hedge your bets). The crypto casino stays open 24/7—just remember the house always wins. *Cue Goldman Sachs quietly shorting COIN while pitching ‘blockchain exposure’ to clients.*

The Coinbase stock has gained notable traction as the crypto stock closed at a new high on Thursday, June 26.

However, despite the initial optimism, some investors are wondering if the momentum in the COIN price could be sustained.

For context, large investors like Cathie Wood’s Ark Invest already dumped a massive stake in Coinbase stock, which has sparked concerns among traders.

Besides, the pre-market data also suggests that the market participants might be playing it SAFE before further cues on the potential future movements of the stock.

Coinbase Stock Price & Performance: Here’s All

The Coinbase stock closed at more than 5.5% on Thursday, June 26, with its price recording a new closing high of $375.07.

Notably, the COIN price has also touched its all-time high in the prior session, which also indicates the strong confidence of the investors in the asset.

The 52-week high and low of the crypto stock were recorded at $382 and $142.58, respectively. Besides, the $94.9 billion firm has added more than 40% over the last 30 days, while witnessing a year-to-date (YTD) gain of 51%.

So far, the crypto stock has outpaced most of its peers with the global shifting focus towards digital assets. However, the market participants appear to have turned cautious today, as evidenced by the pre-market performance of the leading crypto exchange’s stock.

For context, the stock already went down around 0.6% to $372 before the Wall Street opening bell today. So, here we explore some of the top reasons that might stall the robust growth in the Coinbase stock ahead.

Cathie Wood’s Ark Invest Dumped $12M In COIN Stock

One of the primary reasons for the recent pullback in Coinbase stock could be the latest trading MOVE of Cathie Wood’s Ark Invest.

The investment management firm has recently sold 33,363 COIN shares, which might have spooked the investors.

The overall transaction was valued at around $12.5 million as per the closing price of COIN shares on June 26. Having said that, some investors are looking for potential reasons behind the recent move of Ark Invest.

While many deem the transaction as a profit-booking strategy, others have cited strategic movement behind the selloff.

However, this is not the first time the investment management firm has sold the crypto exchange’s shares.

Earlier this month, the firm sold COIN, HOOD, and other crypto stocks while betting around $373 million into Circle stock. Notably, CRCL has also gained notable traction in the market since its debut on the US stock market.

Profit-Book Strategy

The speculations also soared as many are also evaluating the possibilities of the profit-booking strategy by the market participants.

This is a common strategy that investors often take to book profits when an asset reaches a higher price.

Having said that, the Coinbase stock closed at a new high on Thursday might allow many traders to offload at least some of their holdings for profits.

Although there is no assurance of the move, the recent selloff by Ark Invest has spooked the market participants.

Crypto Market Volatility

The crypto market has gone through a turbulent phase lately. Considering that, the ongoing volatility in the broader digital assets space might continue to weigh on the traders’ sentiment, while impacting the Coinbase stock price.

Meanwhile, the crypto stocks often tend to move in tandem with the broader crypto market movements. The global crypto market cap has lost around 0.5% today to $3.27 trillion.

If the digital assets continue to bleed, the crypto stocks might also face the heat.

Analysts Remain Bullish On Coinbase Stock

Despite the short-term woes, the analysts remain optimistic about the long-term trajectory of Coinbase stock. For context, Bernstein analysts have provided a bullish outlook for COIN price.

The analysts have raised the price target for Coinbase to $510, reflecting their robust confidence in the asset.

Besides, they also predict Coinbase’s revenue to come in at $14.1 billion by 2027, which has also sparked investors’ optimism.