Coinbase (COIN.US) stock jumped more than 5% after the largest crypto exchange in the US posted strong quarterly figures. Company earned $6.42 per share, well above analysts’ expectations of $2.32 per share. Revenue of $2.03 billion also topped market projections of $1.821 billion. The trading platform posted a net profit of $1.6 billion in Q2, a significant increase of 4,900% compared to the $32 million recorded in the same period in 2020. Coinbase managed to increase its monthly user base and the value of processed transactions. All the while, the value of the crypto assets that were being traded declined by approximately 20%. Retail traders accounted for $145 billion worth of total volume, while institutional investors represented $317 billion, equating to increases of 20% and 47% compared to Q1 respectively. Company announced that in recent months it has formed partnerships with industry leaders including Elon Musk, PNC Bank, SpaceX, Tesla, Third Point LLC, and WisdomTree Investments. On the flip side, Coinbase expects lower trading volume and active users for the current quarter, following a drop in crypto prices and trading action, even as second-quarter results beat expectations.
Coinbase (COIN.US) stock launched today's session with a bullish price gap however buyers failed to uphold momentum and price pulled back from resistance at $294.40 which coincides with 38.2 Fibonacci retracement of the downward move which started after April's IPO. If current sentiment prevails, downward move may accelerate towards support at $ 261.85 which is marked with 23.6 Fibonacci retracement. Source: xStation5
