Coinbase is Up 319% YTD as BTC Shines in 2023, Becomes One of SPX’s Best Performers

Bitcoin (BTC) hit a new 18-month high on Monday, exceeding the $42,000 threshold for the first time since April 2022. This crypto market resurgence has boded well for Coinbase (NASDAQ: COIN), one of the biggest crypto exchanges, which has seen its share price surge this year. The stock seems to be in a favorable position to benefit from the much-anticipated spot Bitcoin ETF launch that could further propel BTC’s rally. 

Coinbase Adds $12B in Market Cap in November

Coinbase Global’s stock has been on a tear this year, and there are no clear indications that the rally will stop soon.

The crypto exchange saw its share price rocket more than 63% over the past month, bringing its year-to-date gains to a staggering 319%. In November alone, the company’s market cap added about $12 billion, propelling its total valuation to $33.7 billion.

With its stock price up 319% since the start of the year, Coinbase is outstripping the S&P 500’s best performers, including the AI-buffed Nvidia (NASDAQ: NVDA) and Meta Platforms (NASDAQ: META). The cryptocurrency exchange has been building momentum this year thanks to various factors.

One of the primary catalysts has been the resurgent crypto market, which is flooded with optimism that the SEC is inching closer to approving the first-ever spot Bitcoin ETF. Further, the demise of Sam Bankman-Fried’s FTX in November 2022 and the recent challenges at Binance have additionally stimulated investors to buy Coinbase’s shares in hopes that it will witness business growth – particularly if regulators greenlight the spot BTC ETF. 

At this point, Coinbase remains the only cryptocurrency exchange without serious regulatory challenges and the best-positioned one to capitalize on any further crypto rallies. 

“Coinbase is in a better position today than really any other point as a public company,” said Needham & Co. analyst John Todaro, noting that 2022 and 2023 have been “shakeout years” for the cryptocurrency market.

“Those who survived are going to come out of that stronger. And Coinbase is one that survived.”

– he added.

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Bitcoin Crosses $42K on ETF Hype and Alleviating Macro Pressures

As mentioned, Bitcoin’s latest ascent has further boosted Coinbase’s 2023 rally, turning November into its second-best month since the company went public in 2021.

For the first time since April 2022, the flagship cryptocurrency has briefly broken above the $42,000 mark on Monday. Over the past 30 days, BTC gained almost 20%, lifted by speculations that the SEC could approve the inaugural spot Bitcoin ETF as soon as January 10. 

The securities watchdog rejected such applications in the past, but analysts expect a different outcome this time due to a shifting regulatory mood.

Apart from that, investors’ appetite for risk assets has also increased amid easing macroeconomic challenges in the US. Federal Reserve chair Jerome Powell said last week that the current level of interest rates is keeping inflation under control, bolstering hopes that the central bank has reached the end of its rate-hiking campaign. 

Do you expect Coinbase to continue trending higher throughout 2024? Let us know in the comments below.