← Go back Apr 04, 2023
On the back of a surprisingly strong crypto rally in the first quarter of 2023, shares of Coinbase Global (NASDAQ: COIN) have spiked more than 70% year to date. That's even better than Bitcoin, which is up about 65% over the same period. So now comes a moment of truth. Over the past month, shares of Coinbase are actually down 20%, and some investors are starting to back away from the cryptocurrency exchange. Although the financial picture at Coinbase seems to be getting brighter, a number of regulatory issues still hang over the company. So is now the time to buy the dip?The biggest factor in Coinbase's favor is the reversal of fortunes in the crypto sector. It might sound obvious, but if the crypto market is rallying, then Coinbase should be rallying as well. That's why the huge, well-publicized rally of Bitcoin is so important -- it could mark the return of the retail investor to the crypto market, and that would be huge for key Coinbase metrics such as monthly active users and monthly trading volume. The more people who are trading, the more money Coinbase should be making.Continue reading
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