Coinbase stock faces recent volatility, amid regulatory overlap – analyst

Coinbase's share price may face volatility in the near term due to ongoing litigation with the US securities regulator, as well as a drop in the price of Bitcoin (BTC), investment bank Oppenheimer said.

In a recent interview with Yahoo Finance, Oppenheimer analyst Owen Lau explained that Coinbase's ongoing legal turmoil related to its lawsuit with the US Securities and Exchange Commission (SEC) over alleged violations of securities laws, could mean that COIN is currently priced at $125, recently. There are some price fluctuations.

“There's still regulatory oversight, we still don't have clear guidelines in the United States.”

However, Bloomberg litigation analyst Elliott Stein recently voiced his hope that Coinbase's lawsuit against the US regulator will be dismissed outright, predicting a 70% chance the exchange will be ruled out of court.

Lau's expected price swing for COIN is in response to the roughly 28% drop over the past 30 days. However, the last three months have seen a total gain of around 67%.

Lau attributed the overall increase to the rise in Bitcoin prices at the end of 2023, which occurred on January 10 due to the US SEC's growing optimism over the Bitcoin ETF.

However, following the SEC's approval of spot Bitcoin ETF applications, Bitcoin prices have fallen approximately 10.37% over the past two weeks. At the time of publication, the value of Bitcoin is $41,863.

Related: Coinbase Addresses Gate Dominance Threats With Customer Diversity

As for the price of Bitcoin, Lau similarly predicts that it will experience short-term price fluctuations.

“I think there will be some downward momentum in Bitcoin in the near term until the next stimulus,” he said.

On January 23, Cointelegraph reported that JPMorgan also downgraded Coinbase's stock to an “underweight” rating, citing falling bitcoin prices and listing shares of spot bitcoin ETFs.

Magazine: Coinbase Fights SEC in Court, SBF Parents Want Lawsuit Dropped, and Bitcoin ETFs: Hodler's Digest, January 14-20