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Is Coinbase Setting New Stock Records the Key to Winning Big with the Trump Trade?
As the cryptocurrency sector heralds “Crypto Week,” Coinbase’s stock demonstrates robust momentum, potentially setting a new record high. This surge aligns with a broader positive trend in the crypto industry, notably since President Donald Trump’s administration began. On Monday, Bitcoin soared past the $123,000 mark, a spike driven by favorable legislation, the resolution of SEC lawsuits, and the appointment of crypto-friendly regulators.
Coinbase’s Market Cap Eyes the $100 Billion Milestone
Starting 2025 with a bang, Coinbase has seen its stock increase by 2% to $394.79 in Monday’s trading, surpassing the previous high of $388.96. This year alone, the stock has surged an impressive 63%, with the company on the brink of reaching a $100 billion market cap for the first time. Analysts from Ned Davis Research highlight that no other company has capitalized on the current political climate as much as Coinbase.
A pivotal moment for Coinbase was in February when the SEC concluded a two-year lawsuit against the company, which had accused it of operating as an unregistered securities exchange. Following this victory, Coinbase became the first cryptocurrency firm to join the S&P 500, significantly bolstering its market standing.
Legislative Developments Propel Optimism
The optimism continues as Congress discusses three bills aimed at clarifying the regulatory framework for cryptocurrencies. These bills have received widespread support from crypto advocates. Furthermore, the SEC’s decision to transfer crypto oversight to its Cyber & Technology unit and to repeal certain restrictive regulations has boosted confidence in the market.
Coinbase: News of Future Expansion and Regulatory Wins
Looking forward, Coinbase is likely to petition the SEC to allow tokenized equities on its platform, with CEO Brian Armstrong’s connections to Trump potentially playing a crucial role. Additionally, the company stands to gain from the Clarity Act, aimed at boosting institutional confidence in digital asset trading.
Benchmark Equity Research maintains a Buy rating on Coinbase with a target price of $421. However, some analysts suggest that these positive developments may already be reflected in the current stock price. Owen Lau of Oppenheimer assesses a 70% likelihood of the Clarity Act passing and has adjusted his trading volume estimates for Coinbase accordingly, ahead of the July 31 earnings report.
Long-Term Prospects Remain Strong Despite Potential Short-Term Volatility
Even if the upcoming earnings report underwhelms, the broader momentum behind Coinbase is expected to remain unaffected. Oppenheimer has reiterated an Outperform rating, raising its price target to $417 from $395.
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As we watch these developments unfold, the trajectory of Coinbase and its impact on the stock market continues to be a significant indicator of the crypto industry’s integration into mainstream finance.
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