Summary
Coinbase is expected to report improved financial results for the fourth quarter of 2021, thanks to the surge in cryptocurrency prices and higher trading volumes. Analysts anticipate that the company may have been profitable during the quarter, with trading revenue expected to have recovered substantially. Bitcoin’s price increased by over 50% in the fourth quarter, and Coinbase is likely to have benefited from this price rally. Analysts will be listening for updates on trading volumes, average pricing, the impact of new US spot bitcoin ETFs, and the ongoing lawsuit with the SEC.
Key Points
1. Coinbase is expected to report quarter-over-quarter improvements in its fourth quarter results, indicating a potential recovery for the company. The surge in cryptocurrency prices and higher trading volume are seen as significant factors contributing to this recovery.
2. Analysts anticipate a substantial increase in Coinbase’s trading revenue during the fourth quarter, potentially leading to profitability for the company. The rally in Bitcoin’s price and the approval of the first US spot bitcoin ETFs by the Securities and Exchange Commission are expected to have a positive impact on Coinbase’s performance.
3. Analysts will be paying attention to Coinbase’s trading volumes in 2024 and the average pricing on trading, as these factors determine the intensity of the company’s benefit from stronger cryptocurrency markets. The impact of new US spot bitcoin ETFs and the potential approval of an ether ETF on Coinbase’s operations will also be of interest. Additionally, updates on Coinbase’s ongoing lawsuit with the SEC and information about its derivative or international expansion efforts would be valuable.