Major cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) has seen its stock price climb over 250% so far this year. This brings the company close to its valuation from before the massive crypto crash of 2022.

Last year’s cryptocurrency decline started with the implosion of TerraUSD, a so-called “stablecoin” whose value was algorithmically pegged to the US dollar. TerraUSD lost its peg, causing it to plummet in value and create a domino effect across the crypto markets. Major coins like Bitcoin and Ether saw huge drops, with Bitcoin falling below $20,000 at one point. This also affected many crypto companies, and the further effects of the FTX crash also made many of them file for bankruptcy. Most of the remaining companies had a major dip in price value, with even an industry leader like Coinbase not left out.

The Rise of COIN Shares Value

COIN is presently trading at $119 after closing at $115 on November 27, which is the highest close since May 2022. The price now has minimal resistance ahead as it moves toward $130, the May 2022 high. This upward move is part of a larger uptrend that started at the end of October when the price reached a bottom at $70. Since then, the company’s stock price has shown no signs of declining, increasing over 50% within a month.

Major Drivers of the Coinbase (COIN) Stock Rebound

Coinbase (COIN) stock rebound comes alongside this broader crypto revival. The company’s valuation sank as crypto struggled, so it makes sense that the exchange is thriving again now that the market is bouncing back. Many cryptocurrencies have shown signs of recovery, with Bitcoin now trading above $36,000 after breaking above $31,000, which has kept the price from going higher since the middle of the year. Ethereum now trades above $2,000, and many other altcoins have also made some upward moves in the last few weeks.

Another major driver of Coinbase’s stock price rise is its embrace by institutional crypto investors. Major financial giants like BlackRock and Fidelity have chosen Coinbase as their partner for upcoming crypto exchange-traded funds (ETFs). These ETFs will give traditional investors exposure to crypto without having to directly own digital assets.

By serving as the custodian and gateway for these Wall Street institutions venturing into crypto, Coinbase cements itself as the bridge between mainstream finance and the world of cryptocurrency. The confidence that these major financial establishments have in the crypto company also validates it as a secure and compliant platform that can assist in spreading wider crypto adoption. This is also automatically expected to bring a lot of money into the company’s stocks.

This continued growth for Coinbase is also coming at a time when Binance and its former CEO are facing serious legal battles from major regulators, especially in the United States. This could be said to testify to the fact that the ongoing case is not having much negative effects on investor belief concerning the future of crypto services and companies.

Amid the stock growth and the interest from traditional investors, Coinbase still faces challenges like its ongoing lawsuit over token listings brought by the SEC. However, its partnerships with top investment managers, its key roles in the crypto industry, and its brand reputation put Coinbase in a strong leadership spot as crypto inches toward mainstream viability. If crypto’s recovery continues, expect Coinbase’s stock to keep making gains.

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After its third-largest weekly fall in over a year, the Bitcoin (BTC) price has finally began to rise. BTC’s price has effectively rebounded from the important support level of $37,500, despite an impending Federal Reserve rate hike.

Bitcoin Poised For 10% Jump

Various analysts, like The Wolf of All Streets, Michael van de Poppe, and PlanB, are bullish on the bullish trend, with the Bitcoin price currently holding above $39,000.

In a tweet on May 4, on-chain data provider Santiment published historical data showing a 20% rally as a result of BTC transactions is negative at the same levels between February 16 and 22. The week’s Bitcoin Ratio of On-Chain Transactions Volume in Profit/Loss statistic is the third largest capitulation in a year.

As technicals improve, several analysts and traders forecast a price increase in the following days.

Michaal van de Poppe predicts that the price of Bitcoin (BTC) will rise from current levels. He stated,

“Bitcoin starts to look way better at this stage. Odds that the event tonight is a ‘Sell the rumour, Buy the News’ event are increasing.”

A prominent crypto trader, The Wolf Of All Streets, predicted a rebound in Bitcoin price as it breaks above the trend line. A big rise could be anticipated if the BTC price stabilizes over $39,000.

Bitcoin On-Chain Transactions Volume. Source: Santiment

According to PlanB, the original $55K S2F model, which was released in March 2019, appears to be tracking the Bitcoin price trend. He also expects Bitcoin to rise in value.

The price of Bitcoin (BTC) has regained over 5% in the previous 24 hours, stabilising near $39,000. Whales continue to accumulate at dips, resulting in a huge increase in trading volume. Furthermore, the BTC has avoided a drop below the critical support level. It suggests that a rally could happen in the next several days.

Suggested Reading | Bitcoin Briefly Tops $40,000 As More Countries Adopt Crypto

BTC Trades Sideways

BTC has been trading sideways over the past few days, with the price dropping below $40,000 on April 26. Although, after reaching the swing highs near $48,000, the price has already begun to drop. BTC retreated and lost 45 percent of its value. BTC sellers, on the other hand, are weary as the price trades sideways in a narrow range since April 25.

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BTC/USD trades sideways. Source: TradingView

A daily close below the session’s low, on the other hand, would disprove the bullish price assumption. In that situation, $36,000 would be the lowest point on the downside.

BTC/USD is currently trading at $39,874, up 5.63 percent for the day as of publishing time. According to CoinMarketCap, the first cryptocurrency by market capitalization has a 24-hour trading volume of $35,528,442,016.

Suggested Reading | Will Bitcoin Shoot Over $40,000 — Or Drop To $35,000?

Volatility Drops

Bitcoin’s historical volatility is at 18-month lows, according to statistics released by the Buy Bitcoin Worldwide webpage. Its anticipated 60-day average value fell to 2.62%.

Bitcoin (BTC) volatility was last this low in November 2020, when the orange coin broke through $10,000 for the first time in this bullish cycle.

Image by Buy Bitcoin Worldwide

On April 27, 2022, thirty-day volatility reached a local low, but it is already showing signs of recovery.

The Bitcoin Volatility Index (BVOL), similar to the stock market’s VIX, shows how much Bitcoin’s price changes on a given day in relation to its previous price.

The most recent increase in Bitcoin (BTC) volatility occurred in July 2021, when the flagship cryptocurrency was twice as volatile over a 30-day period as it is now.

Featured image from Pixabay, chart from TradingView.com