Coinbase Stock Surges as Bitcoin Sets New Records, Analysts Raise Price Target

Amid Bitcoin’s record-breaking rally, shares of major crypto exchange Coinbase (COIN: NASDAQ) have soared, with analysts forecasting a potential price target of $380 over the next 12 months.

Bitcoin, the world’s largest cryptocurrency, crossed the $89,500 mark on Monday, continuing its record-setting trend and pushing crypto-related stocks higher. Coinbase, the largest crypto exchange in the U.S., has seen a significant jump in its stock price, closing Monday’s trading session at $334.24, according to Google Finance data. This marks a nearly 20% gain in just 24 hours and an impressive 84% increase over the past month.

After-hours trading showed additional gains for Coinbase, with the stock rising to $327.40. Coinbase is now nearing its debut price of $381, which it reached when the company went public in 2021 during the last bull market cycle.

Analysts Set $380 Price Target as Bitcoin Momentum Grows

According to data from TipRanks, analysts are now setting a 12-month price target of $380 for Coinbase. Of the experts weighing in, nine have recommended a “buy” rating, while eight suggest a “hold” position. This positive outlook reflects the current market’s optimism about both the crypto industry and Coinbase’s growth potential.

Coinbase’s services extend beyond a typical trading platform; the company provides custody and other services for nearly all major Bitcoin ETF issuers, including Wall Street giant BlackRock. This positions Coinbase as a key player in the institutional crypto space, which is likely to benefit as more investors turn to regulated crypto assets.

Presidential Election Fuels “Trump Trade” for Crypto Stocks

Since Donald Trump’s presidential election victory last week, Coinbase stock has jumped by 67%, with analysts linking the surge to Trump’s vocal support for Bitcoin and the digital asset sector. Trump has publicly committed to policies that would allow the U.S. to become a global leader in crypto, stating he aims to make the country the “crypto capital of the planet” and allow all future Bitcoin to be mined domestically.

Trump’s pro-crypto stance has sparked what some analysts are calling a “Trump trade,” with investors piling into technology and crypto stocks in anticipation of policies that could boost the digital asset sector. This sentiment is likely contributing to Coinbase’s recent surge as well as strong performances from other Bitcoin-related companies.

MicroStrategy Also Sees Record Highs

Coinbase is not the only company riding Bitcoin’s wave. MicroStrategy, a software firm turned “Bitcoin development” company, hit an all-time high of $351 on Monday. The company holds the largest amount of Bitcoin on its balance sheet of any publicly traded company, solidifying its position as a Bitcoin proxy stock. Like Coinbase, MicroStrategy is benefiting from increased interest in crypto assets driven by Bitcoin’s recent highs and Trump’s crypto-friendly outlook.

Future Outlook for Coinbase and Bitcoin-Related Stocks

Analysts remain optimistic about Coinbase’s future, citing its prominent role in the growing institutional crypto market and its close connections with major Bitcoin ETFs. As Bitcoin continues to break records and gains mainstream acceptance, crypto-related stocks like Coinbase and MicroStrategy could see continued growth in the coming months.