Coinbase Global, Inc. (COIN) shares are trading higher on Monday as several crypto-related stocks move up, propelled by the rise in the price of Bitcoin. In the past month, Coinbase shares have surged by 48% as Bitcoin’s recent rally continues. This surge comes in the wake of the approval of several spot Bitcoin ETFs in January, as institutions make substantial purchases and the acceptance of the cryptocurrency grows. Additionally, investors may be anticipating the next Bitcoin halving event, expected to occur in mid to late-April.
Last week, Coinbase reported significant outflows of Bitcoin, leaving the exchange with 390,000 Bitcoins, equivalent to about $20 billion. These outflows are likely a result of funds being transferred to establish new custodial wallets or provide funding for OTC transactions.
It’s important to note that predicting the future stock prices over long periods of time is challenging. Wall Street analysts employ complex models that consider various factors such as interest rates, economic growth, competitive advantages, management teams, and historical profitability. However, utilizing trend analysis as a tool, investors can aim to forecast a stock’s annual rate of return. Over the past 5 years, Coinbase Global has seen an annualized stock performance of -12.75%. Assuming this trend continues for another 5 years, a similar performance can be expected.
