Coinbase Global (NASDAQ: COIN) is up more than 100% for the year, but much of that stellar performance came in the first half of 2023. Since mid-July, Coinbase is declined about 30%, largely on concerns about persistent weakness in the crypto market. Even high-profile backers, such as ARK Invest's Cathie Wood, have recently been reducing their Coinbase positions, adding to overall weakness.
So could this be a perfect buy-the-dip opportunity for Coinbase? The recent surge for Bitcoin (CRYPTO: BTC), in which it briefly passed $35,000, led to a mini-rally in Coinbase shares, and overall market sentiment appears to be shifting in its favor. Let's take a closer look.
The biggest complaint about Coinbase is that it is having trouble attracting users during a prolonged crypto winter that started back in 2022. Earlier this month, a bearish research report focused on the inability of Coinbase to acquire new customers. The numbers didn't look good, with estimates suggesting that trading volume on the platform might be down as much as 52% from the year-earlier period.
Source Fool.com