Coinbase Stock: Can It Double From Current Levels?

The recent surge in Bitcoin's price past $93,000 has once again pulled shares of the leading U.S. cryptocurrency exchange, Coinbase, higher. This correlation underscores a fundamental dynamic for the company: its fortunes are closely tied to the crypto market's health. However, as the stock battles key technical resistance, a stark divide is emerging among Wall Street analysts, with some predicting nearly 100% upside while others urge caution.

The most bullish outlook comes from Bernstein, where analysts maintain a $510 price target for Coinbase shares. This projection suggests a potential gain of approximately 90% from recent trading levels. The firm's thesis extends beyond viewing Coinbase as a simple trading venue. Analyst Gautam Chhugani characterizes the company's evolution toward becoming an "Everything Exchange"—a broad-based financial platform.

This optimistic stance is supported by several recent developments and strong fundamentals:

• Q3 Earnings Beat: The company reported earnings per share of $1.50, significantly surpassing consensus estimates of $1.10.
• Expanding Ecosystem: Its proprietary Base blockchain now processes more than 9 million transactions daily.
• Revenue Diversification: Growing income from stablecoins and derivatives trading is reducing reliance on volatile spot trading fees.
• Institutional Endorsement: Despite market volatility, Cathie Wood's ARK Invest recently purchased over $7 million worth of Coinbase stock.

Furthermore, anticipated announcements on December 17 regarding tokenized equities and prediction markets could position Coinbase to compete more directly with traditional brokerage platforms like Robinhood.

Should investors sell immediately? Or is it worth buying Coinbase?

The Inextricable Link to Bitcoin

The latest price action reinforces the symbiotic relationship between Bitcoin and Coinbase. As the premier cryptocurrency climbs, it reignites risk appetite among both retail and institutional investors. This activity is crucial for Coinbase's transaction-fee-driven business model. Higher trading volumes directly boost revenue, while rising asset prices also strengthen the company's balance sheet by increasing the value of custodial assets.

Persistent Risks and Technical Headwinds

Despite the bullish calls, significant concerns remain. From a chart perspective, the stock continues to face substantial hurdles. It currently trades below both its 50-day moving average (€268.62) and its 200-day line, indicating the broader downtrend is still technically intact.

Other research firms express more reserved views. Argus Research recently downgraded the stock to a "Hold" rating. Similarly, Goldman Sachs reduced its price target to $314, citing concerns that Coinbase's valuation may be excessive given the inherent volatility of its core market. For a sustained re-rating to occur, most experts agree that clearer cryptocurrency regulation in the United States is a critical prerequisite. Until that clarity emerges, Coinbase remains a high-beta, high-risk investment whose trajectory is powerfully influenced by the price of Bitcoin.