oinbase">Coinbase’s stock price could experience volatility in the near term according to Oppenheimer analyst Owen Lau. He cited two key reasons for potential price fluctuations: oinbase">Coinbase’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) and an expected drop in the price of Bitcoin (BTC).
The SEC lawsuit alleges oinbase">Coinbase violated securities laws related to certain cryptocurrency asset listings. While litigation analyst Elliot Stein sees a 70% chance of a full dismissal, Lau said the uncertainty itself could cause oinbase">Coinbase’s $125 stock to swing.
Lau also anticipates Bitcoin will face downward price movements until the next major catalyst emerges. Bitcoin is down 10% in two weeks since the SEC approved spot BTC exchange-traded funds. Lau tied oinbase">Coinbase’s 67% three-month gain to Bitcoin’s late 2023 surge on ETF optimism.
With the lawsuit still ongoing and Bitcoin declining from its recent highs, Lau believes oinbase">Coinbase’s stock is in for some volatility in the coming weeks and months. However, if oinbase">Coinbase sees a favorable litigation outcome and Bitcoin rebounds, the stock could stabilize and continue its overall upward trajectory.
oinbase">Coinbase faces both regulatory uncertainty and dependence on the cryptocurrency market. Its legal battle with the SEC and Bitcoin’s price fluctuations will likely translate to price swings for oinbase">Coinbase shares. But if the company emerges unscathed legally and Bitcoin rallies, the stock could see substantial gains in 2023.
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