S&P 500   5,130.95
DOW   38,989.83
QQQ   444.02
5 Under-the-Radar Artificial Intelligence (AI) Stocks
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
How major US stock indexes fared Monday, 3/4/2024
Macy's, United Rentals rise; Apple, Spirit Airlines fall Monday, 3/4/2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
DeSantis names Disney World district administrator to run elections in Democratic Orange County
Stock market today: World markets are lower after China unveils 5% economic growth target for 2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Ohio foundation begins process to distribute millions in opioid settlement money
Closing prices for crude oil, gold and other commodities
S&P 500   5,130.95
DOW   38,989.83
QQQ   444.02
5 Under-the-Radar Artificial Intelligence (AI) Stocks
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
How major US stock indexes fared Monday, 3/4/2024
Macy's, United Rentals rise; Apple, Spirit Airlines fall Monday, 3/4/2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
DeSantis names Disney World district administrator to run elections in Democratic Orange County
Stock market today: World markets are lower after China unveils 5% economic growth target for 2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Ohio foundation begins process to distribute millions in opioid settlement money
Closing prices for crude oil, gold and other commodities
S&P 500   5,130.95
DOW   38,989.83
QQQ   444.02
5 Under-the-Radar Artificial Intelligence (AI) Stocks
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
How major US stock indexes fared Monday, 3/4/2024
Macy's, United Rentals rise; Apple, Spirit Airlines fall Monday, 3/4/2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
DeSantis names Disney World district administrator to run elections in Democratic Orange County
Stock market today: World markets are lower after China unveils 5% economic growth target for 2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Ohio foundation begins process to distribute millions in opioid settlement money
Closing prices for crude oil, gold and other commodities
S&P 500   5,130.95
DOW   38,989.83
QQQ   444.02
5 Under-the-Radar Artificial Intelligence (AI) Stocks
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
How major US stock indexes fared Monday, 3/4/2024
Macy's, United Rentals rise; Apple, Spirit Airlines fall Monday, 3/4/2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
DeSantis names Disney World district administrator to run elections in Democratic Orange County
Stock market today: World markets are lower after China unveils 5% economic growth target for 2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Ohio foundation begins process to distribute millions in opioid settlement money
Closing prices for crude oil, gold and other commodities

Coinbase Pops As SVB Crumbles To Dust

Coinbase Stock price

Key Points

  • SVB’s collapse has rocked investors’ confidence in the market. 
  • As a result, there’s been a rush into crypto. 
  • Crypto related stocks like Coinbase are rallying as as result.
  • 5 stocks we like better than Coinbase Global

Shares of crypto exchange Coinbase Global Inc NASDAQ: COIN traded up as much as 10% in Tuesday’s pre-market session off the back of a broad rally in crypto. A 20% rally in Bitcoin alone was enough to send investors back into crypto associated stocks, of which Coinbase is always one of the main players. This association has its downsides too of course, seen most obviously in the 85% drop in Coinbase shares since the crypto bubble burst at the end of 2021. 

But back to today’s pop and what it means for investors. Well, for starters, let’s look at the driver behind the rally in crypto. It all began last week when the tech-focused Silicon Valley Bank, a financial institution specializing in serving startups and venture capitalists, suffered run on its deposits and promptly collapsed. 

The Federal Deposit Insurance Corporation (FDIC) stepped in. It shut it down, leading to a long weekend of emergency meetings for the regulators and one can only guess how much stress for the customers with uninsured deposits. The sudden failure of the bank, the biggest since Lehman Brothers in 2008, has been tied to poor risk management, specifically with how the company left itself exposed to a rise in interest rates. 

Rush To Crypto

The news of SVB's financial troubles has sent shockwaves through the tech industry and the broader investment community. Investors have been spooked and are concerned about the potential fallout to stocks from the bank's failure, which is forcing them to turn to alternative investment options as a result. One such option that has seen a significant surge in value is Bitcoin. Having been weak through the second half of February, it has suddenly found itself higher by as much as 35% this week already. 

Four days of solid gains have now unsurprisingly flowed through to the likes of Coinbase. This fresh tailwind comes at an interesting time for the crypto exchange as it continues to weather the ongoing crypto winter. While its shares have been slashed from the heights they knew in 2021, they’re actually not doing so bad recently. Since tapping an all time low at the start of January, they’ve rallied as much as 170%. Though, as mentioned they’d cooled in February, they’re very much in consolidation mode right now and this bump in crypto will do them no harm at all. 


Getting Involved

Let it not be forgotten, Coinbase is still one of the largest cryptocurrency exchanges in the world and is in a very strong position to capitalize on any broader return to form by the likes of Bitcoin and its peers. We know that despite the selloff of the past year the cryptocurrency market is seeing increasing acceptance and adoption from both institutional and retail investors, while Coinbase specifically recently trumped analyst expectations for their Q4 earnings


It will be a while before they’re printing their EPS numbers in black ink, but that doesn’t mean investors can’t make money with their shares in the meantime. The play right now is to watch for contagion fears to spread beyond just bank stocks, and for confidence in the broader stock market to waver. There has already been talk about the Fed slowing, if not downright pausing, their planning interest rate hikes in order to stabilize the system and any sign of this would likely generate strong risk-on sentiment. It’s the opposite of this that has done so much damage to the likes of Coinbase in the past year but the rally since Christmas shows just quickly its shares can run with a bit of momentum.

→ Critical asset just had biggest fall on record (From Stansberry Research) (Ad)

Should you invest $1,000 in Coinbase Global right now?

Before you consider Coinbase Global, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Coinbase Global wasn't on the list.

While Coinbase Global currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Metaverse Stocks And Why You Can't Ignore Them Cover

Thinking about investing in Meta, Roblox, or Unity? Click the link to learn what streetwise investors need to know about the metaverse and public markets before making an investment.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Coinbase Global (COIN)
1.6186 of 5 stars
$229.15+11.4%N/A848.70Hold$128.19
Compare These Stocks  Add These Stocks to My Watchlist 

Sam Quirke

About Sam Quirke

  • s.quirke.us@gmail.com

Contributing Author

Technical Analysis

Experience

Sam Quirke has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical and fundamental analysis, tech stocks, large caps, timing entries and exits

Education

Trinity College, Dublin, Ireland

Past Experience

Professional futures trader, start-up fund manager


Featured Articles and Offers

Search Headlines: