COIN Stock Rises 6% as Investors Watch Global Policy
Coinbase Global (COIN) hit a trading price of $185.91 on Monday, September 14, after opening higher.
COIN was $10.65, or 6.08%, higher than its last trading price of $175.26 at 9:44 a.m. EDT. Traders were anticipating a busy week of central-bank decisions and a key procedural vote on U.S. cryptocurrency legislation.
At the opening bell, COIN rose to $188. COIN did give back some of its early gains, trading between $175-$181, and $177 before buyers came back.
Fed Meeting Could Drive COIN Stock Volatility
The most important catalyst for COIN stock this week is the Fed’s meeting on September 14 and September 15. Markets are expecting the Fed to raise rates by 25 basis points (bps), with an 11.7% chance of no rate change. As of the data released, no rate cut was expected.
These are market expectations and can change.
The Fed had its target range at 3.50-3.75% in July. After a 25-basis-point increase, the range would become 3.75-4.00%. For Coinbase, the impact of a rate decision lies in the fact that monetary policy influences risk appetite and in turn, cryptocurrency prices and demand for crypto-related equities.
Coinbase investors also watch the CLARITY Act developments. It has a direct correlation to digital asset regulation and is an incremental piece of legislation. The cloture motion is up for a vote on Tuesday afternoon, which is of great interest to the crypto community as this is a procedural vote to consider a bill for a first reading.
Though rate decisions are not binding legislation, their influence on crypto sentiment is of interest.
18 state attorneys general expressed concern that the CLARITY Act could undermine investor protections which has the attention of crypto traders.
The Bank of England has its next rate decision scheduled on September 17, with rates currently at 3.75%. The Bank of Japan has a policy announcement following its meeting on September 18. An increase to any of their rates could impact trading using the yen. The BOJ rate decision could impact trading activities globally, regardless of whether the BOJ holds rates constant.
Neither of the two decisions made by the central bank represents a direct concern for Coinbase; however, changes in global liquidity or risk appetite may impact cryptocurrency markets, and consequently, COIN.
COIN Stock Prediction: Can Coinbase Reach $200?
As of $185.91, shares of Coinbase are approaching a short-term resistance level of $188, based on the supplied session data. A move above $188 could bring focus to $190, and potentially $195 if a bull trend is sustained.
To get from $185.91 to $200 would require almost 7.6% growth, which is a plausible target should the crypto market remain bullish and investors have a favorable response to the Fed, CLARITY Act, BOE and BOJ developments.
On the downside, $180 is a key level to watch, while a $175.26 close on Friday is a reference point. Breaking either of these levels may indicate a slowing bull market trend.
Final Outlook for COIN Stock.
COIN begins the week with a number of events which could have volatility impacting stocks. The Fed decision on interest rates, updated economic outlooks, the CLARITY Act, and policy updates from the BOE and BOJ could all impact risk sentiment and cryptocurrency markets. From the supplied data, $188, $190, and $195 may be upper targets and $180 and $175.26 may be lower targets. Ultimately, how the markets and investors engage with these events will set Coinbase’s direction.
