Cryptocurrency exchange Coinbase (COIN) reports third-quarter earnings on Tuesday, after the price of Bitcoin rallied a day earlier to record highs. Coinbase stock and most other Bitcoin stocks were down.
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Coinbase reports as concerns about inflation and progress in the exchange-traded fund world help lift the digital currency, and as it tries to navigate fluctuations in crypto prices.
Coinbase Earnings
Estimates: Wall Street expects Coinbase earnings per share of $1.82, according to FactSet. Revenue, which it draws from fees on cryptocurrency transactions, was seen coming in at $1.614 billion.
Results: Due around the close of markets on Tuesday.
Coinbase in August said it expected lower trading volume and active users for the third quarter, after a decline in digital-asset prices and trading. The price of Bitcoin has since run higher.
Coinbase Stock, Bitcoin Stocks
Coinbase stock dipped 0.7% to 351.66 in the stock market today, after rising 5% on Monday. COIN stock cleared early entries in mid-October but are now greatly extended. Shares have a best-possible Composite Rating of 99. Their EPS Rating is 84.
The cryptocurrency exchange has said it wants to bring more digital assets onto its platform in an effort to attract users. It recently partnered with Meta Platforms’ (FB) Facebook to handle cryptocurrency storage duties for a pilot of Facebook’s new digital wallet.
However, Coinbase recently shelved plans to launch a lending program after the SEC threatened to sue.
Other Bitcoin stocks fell Tuesday as well. MicroStrategy (MSTR) fell 1.3% to 849.05. Shares were extended from a 777.17 buy point on a cup-with-handle base. Marathon Digital (MARA) fell 1%, after spiking 18% on Monday. Grayscale Bitcoin Trust (GBTC) was up 1%.
Digital-asset miner Hut 8 Mining (HUT), which reports earnings Thursday, jumped 9.5%.
Bitcoin stocks kept rising Monday with Bitcoin and other cryptocurencies.
New Bitcoin-related ETFs, winning recent regulatory approval, were still rising on Tuesday. ProShares Bitcoin Strategy (BITO) was up 0.8%. Valkyrie Bitcoin Strategy (BTF) added 0.7%. The Volt Crypto Industry Revolution & Tech ETF (BTCR) fell 1%.
Price Of Bitcoin Rises
The price of Bitcoin rose 1.8% on Tuesday to $66,825. That price has been climbing since late July, running up sharply in October.
Some analysts attributed Monday’s rally to concerns about inflation, which has reduced the buying power of traditional currencies. Coindesk, citing data from Chainalysis, also said that larger investors had begun scooping up more Bitcoin recently.
“Bitcoin is bouncing higher again, close to all-time highs fueled by expectations that the era of cheap money looks set to hang around for longer, while inflation is expected to keep ticking up,” Susannah Streeter, an analyst at Hargreaves Lansdown, said in emailed commentary on Monday.
Still, she noted that the Federal Reserve’s decision to taper bond purchases this month, and potential tightening up ahead, could prompt a brief sell-off in Bitcoin. A strong jobs report for October, Reuters noted, also left investors wondering about the impact on the Fed’s trajectory for raising interest rates — one of the central bank’s tools for stemming inflation.
The price of Bitcoin and Bitcoin stocks have taken hits this year following China’s crackdown on crypto trading, and Tesla (TSLA) CEO Elon Musk’s hedging on the cryptocurrency. Concerns remain about its energy usage and market manipulation.
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