Despite Bitcoin's Plunge, Coinbase May Have Just Had a Very Good Quarter
Market Musings

Despite Bitcoin's Plunge, Coinbase May Have Just Had a Very Good Quarter

Transaction fee revenues may have been given a boost by panicked traders selling their positions.

Despite Bitcoin's Plunge, Coinbase May Have Just Had a Very Good Quarter

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Coinbase’s financial results for the second quarter are set to surpass estimates on Wall Street, according to Goldman Sachs.

The exchange is currently rated as a Buy by the U.S. investment bank — and even though this period covers a nasty plunge for the crypto markets, its analysts believe that the bearish activity could still work in Coinbase’s favor.

Goldman points to how the slew of negative headlines may have prompted a number of traders to exit their positions, generating revenue for Coinbase in the form of transaction fees.

Coinbase has been struggling ever since its stock market debut back in July. Although it managed to hit highs of $429.54 in intraday trading as excitement peaked over the listing, the stock is currently trading at $247.67 — below the reference price of $250 that was set.

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A Bullish Outlook? 

A robust set of numbers could prompt traders to start re-evaluating the stock with renewed vigor, but threats remain on the horizon. Several countries have embarked on a regulatory crackdown. A few months ago, a number of analysts had also warned that we could see a race to the bottom when it comes to trading fees — and Strike fired the opening salvo earlier this month when it announced that it would allow Bitcoin to be bought and sold at zero cost.

Coinbase recently unveiled plans to adopt a more international outlook to ensure that its products aren’t just geared toward crypto enthusiasts in the West. The company is also exploring launching an app store for DApps, and wants to start listing cryptocurrencies more quickly.