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

Timothy Berg

Bitcoin & Crypto

2 mins

Sep 07, 2022 11:05

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.

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.

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