Coinbase Stock Falls 27% in Month, Down 74% from Start of Year

Coinbase's stock (NASDAQ: COIN) has fallen by around 27% in the last month, even though it had a strong recovery during July. However, it is still down 74% from the beginning of the year.

CHINA - 2022/07/25: In this photo illustration, the online platform for buying, selling, ... [+] transferring, and selling cryptocurrency Coinbase logo is displayed on a smartphone screen. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty Images
I predict that in 2022, Coinbase will be one of the most popular cryptocurrency platforms in the world. People will use it to buy, sell, and transfer cryptocurrencies, and it will be a major player in the industry.

The recent sell-off in Coinbase stock comes as crypto prices have declined once again. The Federal Reserve's indication that it would continue on its path of interest rate hikes has put pressure on crypto prices, with bitcoin falling by close to 12% over the last month. This has in turn affected trading activity on Coinbase, with volumes falling by almost 54% in Q2 2022. Moreover, competition is mounting just as the market is in a downcycle, with Coinbase's market share falling to 6.3% in July 2022.

There's no doubt that cryptocurrencies are facing some headwinds at the moment. The Fed's monetary tightening is putting pressure on non-productive assets like crypto. However, we've seen in the past that bitcoin and other cryptos can bounce back strongly after sell-offs. Coinbase has also shown that it can be a very profitable company during good times. So, while the market is volatile, Coinbase stock may be worth considering for potential investors.

We value Coinbase stock at $120 per share, which is significantly ahead of the current market price of $71 per share. Our analysis shows that Coinbase is a strong company with a bright future. We believe that the stock is a good investment at its current price.

If you're looking for a more balanced portfolio, our high-quality portfolio and multi-strategy portfolio have both beaten the market consistently since 2016. With returns of 175% and 262%, respectively, you can't go wrong with either of these investment options.

COIN Return Compared With Trefis Multi-Strategy Portfolio  Trefis
Looking at the COIN return compared to the Trefis multi-strategy portfolio, it is clear that the former outperformed the latter in terms of returns.

Looking at the Trefis Price Estimates for various companies, it's clear that there is a lot of opportunity for growth in the stock market. With the right investment strategy, anyone can make a lot of money in the stock market.