Cryptocurrency exchange Coinbase (COIN) reports third-quarter earnings on Tuesday, as the price of Bitcoin rallied to just below record highs. Coinbase stock and other Bitcoin stocks rose on Monday.
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Some analysts attributed Monday’s rally to concerns about inflation, which has reduced the buying power of traditional currencies.
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 reports as it tries to navigate fluctuations in crypto prices. The company 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 gained 5% to 353.92 in the stock market today, on track for a record close. 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.
Other Bitcoin stocks marched higher on Monday as well. MicroStrategy (MSTR) rose 7.8% to 860. Shares were extended from a 777.17 buy point on a cup-with-handle base. Marathon Digital (MARA) spiked 18%. Grayscale Bitcoin Trust (GBTC) was up 7.7%.
Digital-asset miner Hut 8 Mining (HUT), which reports earnings Thursday, jumped 9.5%.
Bitcoin-related ETFs followed those Bitcoin stocks higher. ProShares Bitcoin Strategy (BITO) was up 8.4%. Valkyrie Bitcoin Strategy (BTF) added 8.3%. The Volt Crypto Industry Revolution & Tech ETF (BTCR) climbed 9.5%.
Price Of Bitcoin Rises
The price of Bitcoin increased 5.3% vs. 24 hours earlier to $66,093. That price has been climbing since late July, running sharply in October to a record $66,974.77 late last month. Ethereum, another leading cryptocurrency, topped $4,700 for the first time.
Coindesk, citing data from Chainalysis, said that larger investors had begun scooping up more Bitcoin recently. Some analysts, on Monday, saw the gains as a guard against rising prices elsewhere.
“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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