Coinbase Surges 37% as BTC Rises, Strong Q4 Expected

Despite drop in Bitcoin prices analysts anticipate positive fourth-quarter results for Coinbase with expected revenue and trade volumes growth.

In tandem with the current boom in Bitcoin shares of the cryptocurrency exchange Coinbase have increased by 37% over the course of the past week. Stock prices fell by $52,295 despite the fact that analysts expect the company to record solid statistics when it announces its results for the fourth quarter on Thursday.

Analysts collated data from MarketWatch and FactSet, revealing a consensus that Coinbase’s revenue will rise significantly in the fourth quarter. The company’s revenue is expected to increase by around 22% from the third quarter reaching a total of $825 million.

Experts anticipate that robust trade volumes will nearly double from $76 billion in the third quarter to $142.7 billion in the fourth quarter, contributing to a portion of this increase. According to the projections, Coinbase is expected to report earnings per share of $0.02 for the fourth quarter.

This is a significant increase from the $0.01 per share loss that the company had for the third quarter. This comes at a time when the price of Bitcoin has risen by 16.3 percent over the course of the last seven days, according to Coinmarketcap analysis.

A competitor trading platform known as Robinhood reported a rise in overall revenue for the fourth quarter on February 13. This gain was also attributable to an increase in revenue from cryptocurrency trading.

As a result of the cryptocurrency trading revenue that increased by 10% year-on-year increase in cryptocurrency trading revenue, Robinhood’s revenue for the fourth quarter increased by 24% year-on-year, reaching $43 million. Nevertheless there are some individuals who are not confident that it will be able to continue gaining momentum in 2024.

JP Morgan analysts wrote a letter to investors on January 22, predicting that the share price of Coinbase will decrease in 2024. They attributed their projections of Coinbase’s bad performance to an “underwhelming” start to spot trading for Bitcoin exchange-traded funds (ETFs).

The approximately $6 billion that flowed out of Grayscale’s newly converted GBTC fund between January 11 and February 2 caused spot Bitcoin exchange-traded funds to experience a rough first few weeks.

However, net inflows have dramatically increased over the past few days, despite the fact that spot Bitcoin ETFs experienced turbulent initial weeks.On February 13, BlackRock’s IBIT generated a staggering $493 million worth of inflows, while the 10 exchange-traded funds (ETFs) collectively experienced a total of $631 million in net inflows.

Related: Joe Biden’s choice for the position of OECD ambassador might opt out of serving on the advisory council for Coinbase. Coinbase provides custodian services for eight out of ten spot Bitcoin exchange-traded fund (ETF) providers.

These providers include BlackRock, iShares, and Valkyrie.An additional significant obstacle that Coinbase must overcome is the ongoing legal dispute that it is having with the United States Securities and Exchange Commission. James Murphy, a crypto lawyer who is also known as “MetaLawMan” on X, expressed his confidence that the Securities and Exchange Commission (SEC) will lose its case against Coinbase.

Coinbase is going to win their case. I believe the SEC is wrong. They’ve gone too far in trying to make the case that the tokens on the secondary market are investment contracts when that is not correct.”

The Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase in June 2023, alleging that the cryptocurrency exchange traded unregistered securities and disobeyed its guidelines.