Coinbase (COIN) has retaken its 50-day moving average, drawing attention from analysts, including CWEB, who issue a buy signal. With President Trump’s Bitcoin strategic reserve fund plan and key regulatory changes, is Coinbase a strong buy now?
Coinbase (COIN) has experienced a notable recovery, retaking its 50-day moving average following a pullback. The stock has shown resilience, aided by developments in the cryptocurrency space, particularly the introduction of a Bitcoin strategic reserve fund by former President Donald Trump and key regulatory changes. As a result, CWEB analysts have issued a buy signal for Coinbase, suggesting that the stock may be poised for further gains.
Key Developments Driving Coinbase’s Stock
Coinbase’s stock has been closely linked to the price of Bitcoin (BTC), which directly affects its trading volumes and revenue. Recent developments, including Trump’s Bitcoin reserve plan and the release of a new executive order by the White House, have positively impacted both Bitcoin and crypto-related stocks. Trump’s July announcement of a Bitcoin strategic reserve fund in a Bitcoin conference stirred optimism within the crypto community. Additionally, the executive order released Thursday aims to promote public blockchain access and stablecoins backed by the U.S. dollar, which could further enhance the regulatory framework for digital assets.
With these macroeconomic shifts, Coinbase has seen its stock rise significantly. After the November elections, the stock gained 53%, driven by a broader post-election rally in crypto-related assets. The increase in Bitcoin prices, which surged to an all-time high of $108,659 in January 2025, has fueled optimism around Coinbase.
Key Regulatory Changes
A critical aspect of Coinbase’s trajectory is the evolving regulatory environment. Recently, President Biden issued an executive order promoting access to public blockchains for mining, validating, and self-custody purposes, which directly benefits Coinbase as a major exchange. The order also emphasized the promotion of stablecoins and prohibited the use of a Central Bank Digital Currency (CBDC) in the U.S. This regulatory clarity has spurred further confidence in the future of digital assets and platforms like Coinbase.
Further bolstering the positive outlook for Coinbase was the Senate’s appointment of Sen. Cynthia Lummis (R-WY) to lead the Banking Subcommittee on Digital Assets. Lummis, a supporter of cryptocurrencies and the Bitcoin strategic reserve fund, is likely to push for favorable regulations for crypto companies, which benefits Coinbase in the long run.
Performance and Momentum
Looking at Coinbase’s performance, the stock has outperformed most of its peers in the financial services specialty group. According to IBD Stock Checkup, Coinbase ranks 4th in its group, boasting a Composite Rating of 98. The company’s earnings per share (EPS) rating stands at 81, reflecting strong potential but room for improvement in certain areas.
The Relative Strength Rating of 94 places Coinbase among the top stocks, signaling that it has been performing well relative to its peers. After a volatile 2022, when the stock fell by 86% amid a dramatic downturn in cryptocurrency prices, Coinbase rebounded strongly in 2023 and 2024. The stock rose by 391% in 2023 and gained 43% in 2024, outpacing the broader S&P 500 index, which rose 23%.
Bitcoin, too, has experienced significant price movements, doubling in value in 2024 after gaining 150% in 2023. These price fluctuations have directly impacted Coinbase’s revenue, but the company has managed to navigate this volatility by leveraging its position as one of the leading cryptocurrency exchanges in the market.
Is Coinbase a Buy Now?
Given the regulatory support, the growth in Bitcoin prices, and the strategic initiatives by Coinbase, CWEB analysts view the stock as an attractive buy. The company’s positioning as a leader in the cryptocurrency exchange market, combined with its improved technical outlook, suggests that it could continue to benefit from the broader crypto boom, especially with the recent positive regulatory developments.
While Coinbase can be volatile—primarily due to the fluctuations in the price of Bitcoin—it remains a strong player in the crypto space. With a favorable technical setup and an increasingly supportive regulatory environment, CWEB analysts believe that Coinbase presents a solid buying opportunity for investors looking to capitalize on the ongoing cryptocurrency growth.
The Bottom Line
Coinbase has shown remarkable resilience and growth, particularly as it aligns itself with the evolving regulatory landscape and the booming cryptocurrency market. With CWEB issuing a buy signal and a strong performance outlook, Coinbase is well-positioned for potential further gains in the coming quarters. Investors should continue to monitor developments in both the regulatory landscape and Bitcoin’s price to assess the ongoing opportunities for the stock.
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