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Coinbase stock forecast 2025: Negative for two consecutive days

 

Coinbase

For investors in the currency circle, these two days are destined to be an uneasy day. First, the Republic of El Salvador officially regarded Bitcoin as a legal currency for trading, and then Bitcoin experienced a wave of flash crashes. The price once plummeted from $52,800 by 19% to $42,900. Finally, the Bitcoin exchange Coinbase was negative for two consecutive days.


 Let me talk about the fact that El Salvador uses Bitcoin as a legal currency. To attract more foreign investment and provide lower-cost financial and foreign exchange services, the Salvadoran government-approved Bitcoin as a legal currency as early as June this year and decided to officially implement this currency on September 7, which is yesterday. policy. The government plans to distribute $30 worth of bitcoin to residents who have registered for e-wallets, with a total investment of up to 75 million U.S. dollars. But yesterday’s implementation results showed that the start of this plan was not smooth. In addition to the e-wallet app that did not appear in the major app stores in time, many residents of El Salvador encountered difficulties when registering. To


 However, implementing the above is not the only problem encountered by Bitcoin as a legal currency. Yesterday, after the New Deal in El Salvador, Bitcoin set its biggest decline in nearly two months. In this regard, the chief market analyst of brokerage AvaTrade believes that this is the performance of Buy the rumor, sell the news. He said that since July, the price of Bitcoin has recovered 70%. It shows that the Bitcoin market has already priced in the good news "as a legal currency". Therefore, when the policy really starts, that is, when the good news bonus is used up. Therefore, he believes that this decline is just a healthy market correction. The founder of Fairlead Strategies believes that Bitcoin's trend is more of a technical issue. She believes that at present, this degree of decline can be regarded as a slight correction because the closing price of Bitcoin has not fallen to the 50-day moving average of $44,000, and most digital currencies have strong technical aspects. Reserve price support level. To


 Under yesterday's sharp volatility, the business of Bitcoin exchange Coinbase was also affected, causing its stock price to fall by 4.17% yesterday. Coinbase said on Twitter that some of the orders could not be sent out yesterday morning, but it has been resolved this afternoon. The difficulty of this transaction caused dissatisfaction among many users. They sarcastically said on the company's Twitter: "Interestingly, every time the price drops, the transaction goes wrong." However, a wave of unrest has occurred again, and Coinbase received a warning from the SEC today and has been on the hot page of financial news for two consecutive days. Coinbase said last night that the SEC warned them that they would be prosecuted if they continue to promote the lending of digital currencies and collect interest from them. To this end, the company announced that it will postpone the feature launch date by ten days. Affected by this news, Coinbase's share price fell again today, once fell 4.5% during the session, but then the share price rose slightly, and finally closed with a 3.2% drop. To


 Although I don't know what the mood of the officials in the currency circle is, seeing this series of news is like a roller coaster, one after another, just like the price of Bitcoin. Regarding Bitcoin being used as the legal currency of El Salvador, I think the impact on the market is very limited. The main reason is that El Salvador’s economy is very small and has little influence on the development of Bitcoin, which is far less terrifying than a policy of the United States or China. At present, it seems that these influential countries still have a negative attitude towards Bitcoin, so Bitcoin will experience regulatory risks for a long time in the future. To


 As for Coinbase, I would also like to express my views on this matter. First of all, I am not too worried about regulatory pressure, because, from the company's handling of similar issues in the past, Coinbase has a high probability of successfully surviving the catastrophe. As for Coinbase, its profit model is more stable than the digital currency itself, and it can also benefit from the long-term trend of digital currency. If you want to deploy a digital currency, but don't want to bear excessive volatility, Coinbase will be an excellent alternative to digital currency.

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