Key Points:
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The largest US crypto exchange sees a remarkable surge in Coinbase Global shares, reaching $120 each.
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Traders flock to Coinbase amidst legal issues at FTX and Binance, viewing it as a stable player surviving industry challenges.
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Coinbase gains momentum with potential SEC-approved Bitcoin ETFs, while exploring relocation options if negotiations with the SEC prove challenging.
In the midst of a broader market rally, Coinbase has experienced an impressive 62% surge in Coinbase Global shares this month, capturing the attention of Wall Street amidst concerns surrounding competitors like FTX and Binance Holdings.
Coinbase Global Shares’ Meteoric November Surge
Investors are flocking to Coinbase amid uncertainties following FTX’s Sam Bankman-Fried fraud conviction and revelations at Binance. Traders hope that Coinbase will benefit from increased business, especially if regulatory authorities approve exchange-traded funds targeting Bitcoin. The stock has tripled in 2023, gaining an additional $12 billion in market value in November alone.
Bloomberg reported that analysts, such as John Todaro from Needham & Co., believe that Coinbase is in a robust position compared to other players in the industry, stating that 2022 and 2023 have been pivotal “shakeout years.”
The momentum behind Coinbase is fueled by regulatory clarity and the potential approval of US-listed Bitcoin ETFs by the Securities and Exchange Commission, expected as early as January. This year has seen a resurgence in tech stocks, particularly those connected to artificial intelligence and crypto, with Coinbase benefiting from having weathered the challenges of the so-called crypto winter.
Crypto Landscape Shifts as Coinbase Prevails Amidst Rival Setbacks
Recent legal troubles for industry rivals, including the fraud conviction of Sam Bankman-Fried and the guilty plea by Binance founder Changpeng Zhao, have intensified the spotlight on Coinbase’s relative stability. While both Coinbase and Binance face legal battles with the SEC, Coinbase executives are contemplating a potential move outside the U.S. should negotiations with the regulatory body prove challenging.
As the exchange continues to navigate industry shifts, its November performance stands out, pushing Coinbase Global shares above $120 each, surpassing the average analyst price target of $84, and solidifying its position in the evolving crypto landscape.
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