What Happened?
Shares of blockchain infrastructure company Coinbase (NASDAQ: COIN) jumped 6.2% in the afternoon session on continued positive momentum from the previous session, largely due to the follow-through enthusiasm surrounding the potential passage of the GENIUS Act.
The Senate's recent approval of this stablecoin bill was viewed as a significant step toward clearer regulatory frameworks for digital assets in the US, which could further legitimize the crypto market and encourage institutional adoption.
This positive regulatory development has been amplified by a bullish note from Bernstein analysts, who argued that the stock was misunderstood and could rally nearly 50%.
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What The Market Is Telling Us
Coinbase’s shares are extremely volatile and have had 65 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 5.9% after Bernstein analyst Gautam Chhugani reaffirmed a Buy rating and raised the price target from $310 to $510.
The analyst added that "Coinbase is the most misunderstood company in our Crypto coverage universe" and thinks the stock can rally nearly 50%. Chhugani cited some of the catalysts that informed the improved outlook, noting COIN is the only "Crypto company in the S&P500, dominates U.S. Crypto trading market, runs the largest stablecoin business amongst exchanges, dominates institutional Crypto, acquired the largest global crypto options exchange and runs the largest and fastest chain on Ethereum forming the tokenization network."
Coinbase is up 47.2% since the beginning of the year, and at $378.40 per share, has set a new 52-week high. Investors who bought $1,000 worth of Coinbase’s shares at the IPO in April 2021 would now be looking at an investment worth $1,153.
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