- Mizuho analyst Dan Dolev reiterates Coinbase Global Inc COIN with an Underperform rating and a $30 price target.
- Investors excited about Bitcoin’s rally to $30K might be in for a rough awakening when they realize it did not boost trading volumes at COIN. COIN’s average daily volumes were <$1 billion in April versus $1.6 billion in March.
- Historically, COIN volumes have mainly moved in tandem with changes in the price of Bitcoin. However, COIN’s average daily trading volumes bucked the trend as they began to decline while the price of Bitcoin increased.
- COIN’s market share is among ~25 of the largest global exchanges is unchanged versus March, at ~4% suggesting limited retail participation.
- Also Read: Higher Bitcoin Prices Prompts Analyst To Boost Price Targets Of These Two Bitcoin Mining Stocks, Reiterate Buy Ratings
- Dolev believes prominent institutional players are buying Bitcoin in hopes that retail will follow. Yet, retail seems uninterested.
- Volumes on COIN – a ‘go-to’ platform for retail are declining despite Bitcoin’s rally.
- More muted increases in Ethereum versus Bitcoin indicate this is not a broad-based crypto renaissance.
- In the recent rally, ETH and other alt-coins have not experienced as much price appreciation as BTC, breaking a prior pattern.
- Specifically, BTC is up ~35% in the last month versus ETH, up ~20%, probably suggesting that BTC was the main focus of the buying rather than a broader market rally.
- Price Action: COIN shares traded higher by 3.33% at $01.12 on the last check Thursday.
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