Summary:
Hedge funds are bullish on Coinbase, with 45 hedge fund holders.
Trump's potential victory could positively influence the crypto market.
Alex Thorn predicts a bullish outlook for crypto post-elections.
Coinbase achieved record-high subscription revenue despite transaction revenue drop.
Over 70% of Bitcoin remains untouched for a year, indicating long-term holder sentiment.
A Review of the Crypto World: Latest Updates
Crypto has emerged as a major political issue in the US amid ongoing election campaigns. According to Alex Thorn, Head of Firmwide Research at Galaxy Digital, August has historically been a rough month for Bitcoin, with 8 out of the last 11 years seeing declines. However, the political landscape is shifting, with many viewing Trump's potential victory as bullish for the crypto market. His promise to make the US the ‘crypto capital of the planet’ has raised hopes, while Kamala Harris's support for expanding the industry complicates perceptions. Thorn predicts that if Trump wins, crypto could soar, while a Harris victory may lead to a more neutral outlook for the industry.
Looking ahead, September is typically weak for crypto, but the following months—October, November, and December—are historically bullish. Despite anticipated Fed interest rate cuts, concerns linger among investors as JPMorgan dismisses the likelihood of a crypto bull market.
In an interview, Anthony Pompliano, CEO of Professional Capital Management, discussed recent Bitcoin price movements and significant events impacting supply, such as the German government's Bitcoin offloading and Mt. Gox's coin distribution. He emphasizes that over 70% of Bitcoin has remained untouched for over a year, with expectations of this figure dropping to 50-55% as prices rise. Pompliano believes time, rather than political candidates, will be the catalyst for Bitcoin's future.
Coinbase Global, Inc. (NASDAQ: COIN)
Number of Hedge Fund Holders: 45
Coinbase offers a comprehensive platform for engaging with cryptocurrency, aiming to improve economic freedom for over 1 billion people. They support a wide ecosystem with 245,000 partners across 100 countries. The firm has seen consistent growth, achieving positive adjusted EBITDA for six consecutive quarters. Despite a 27% drop in transaction revenue, their subscription and services revenue hit a record high of $599 million, indicating successful diversification.
Coinbase's recent Smart Wallet launch simplifies user onboarding, allowing quick access through biometric methods rather than cumbersome passphrases. The company is dedicated to solving customer pain points, positioning itself as a trusted platform in the global crypto landscape.
As of Q2 2024, Coinbase ranks 11th among the best cryptocurrency stocks held by hedge funds, with Citadel Investment Group being the most significant shareholder. While COIN shows promise, other undervalued AI stocks may present better returns in the short term.
A shot of someone securely accepting crypto assets as payment, showcasing the company's payment solutions.
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