According to a Goldman Sachs analyst, profits for Coinbase will remain intact irrespective of a decline in BTC price. The prediction from the analyst came just a day before the finalization of Coinbase’s second quarterly report.
Goldman Sachs has reinstated their “buy” ratings for Coinbase, pointing out that regardless of an upcoming change in Bitcoin (BTC) price, the company may remain in surplus.
Bitcoin has been volatile in 2021, with a tremendous hike in April of up to $65,000; and a terrible fall from May onwards, down to $31,752 as of today. however, Goldman Sachs’ predictions are in favor of the exchange platform, indicating that a “Significantly elevated crypto asset volatility” caused a trading boom that will mean consistent trading operations on Coinbase.
Crypto Crash did not bankrupt exchanges, but they reaped the losses
Coinbase has been down a third in stock prices after a record-breaking high in April. With Bitcoin (BTC) and other cryptocurrencies losing over $1 trillion since the beginning of the year, Coinbase stock prices have suffered from the bear run. Nevertheless, Coinbase has maintained revenue because of constant investments from traders in Bitcoin (BTC) and other coins even after the crash.
The Bitcoin price crash was triggered by the Chinese Crypto Crackdown. China’s government has launched a crackdown on the crypto market, from the ban on mining throughout the nation to the great miner’s migration, many crypto businesses may get caught in the crossfire.
Along with Coinbase, exchange platforms like Kraken, Binance and Bitstamp, were down by 40% in June, according to recent reports by CryptoCompare. Spot trading volumes also dropped 42.7% by May, to $2.7 trillion, with derivative volumes down 40.7% to $3.2 trillion, according to Reuters.
“The digital asset ecosystem got punched in the face, so it’s currently up against the ropes versus fighting in the middle of the ring…Typically when you have large sell-offs, participants are quite fearful and pull back their chips.” Teddy Vallee, chief investment officer at Pervalle Global, told CNBC.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.