Coinbase Premium Index flips positive, hinting at renewed U.S. buying pressure.
Bullish crypto news could ignite the next wave of liquidity as Coinbase officially ventures into stock trading. The leading American-based crypto exchange announced it will launch access to over 8,000 U.S. stocks and ETFs, an expansion that has positioned the exchange as a direct rival to Robinhood and Fidelity.
Coinbase, being a crypto-native platform, will offer 24/5 trading, commission-free trading, fractional shares from as low as $1, and buys in USD or USDC.
Crypto proponents cheered the move, calling Coinbase a “true financial super-app” that boosts the real-world utility of USDC. This move will eliminate siloed portfolios, as investors will be able to flip between Bitcoin and Berkshire Hathaway without having to switch apps.
The push comes at a critical time for Coinbase’s revenue base amid the current crypto winter. However, adding tradFi assets could diversify income streams beyond volatile trading fees.
The integration of crypto with equities will potentially attract non-crypto investors who fear the “degen” life but want easy entry.
Despite the bold move to merge the worlds of crypto and traditional finance on-chain, Coinbase stock (NASDAQ: COIN) continued to struggle. COIN price was on track to close February as its fourth consecutive month in the red, marking a brutal streak amid market jitters.
The 1-day timeframe shows Coinbase stock has been dipping for the past 137 days after topping at around $400 in a classic double-top bearish reversal pattern.
COIN price traded at $162.03 at press time, up 1.12% today after closing at $160.24 yesterday. The uptick may have been influenced by the crypto news around Coinbase’s expansion into crypto trading.
The price was still trending within a falling channel, which is bearish in the short-to-medium term but bullish in the long term. This is because falling channels typically aggressively break to the upside.
The Coinbase Premium Index (CPI) has switched back to positive for the first time in over a month. This metric tracks the BTC price gap between Coinbase (U.S.-heavy) and offshore exchanges.
When it is positive, it means American buyers have stepped in hard. The CPI now sits at 0.015 after spending over a month in the negative.
Despite the positive spin, analysts remain cautious in fear of false dawns seen in past downtrends. If it holds in the positive, it could signal big money flowing back, pumping volumes, and propping Coinbase stock for more upside.
The Coinbase stock foray has sparked debate among crypto circles. Some hail it as a genius pivot that turned the exchange into a one-stop degen hub, while others question whether it will survive crypto slumps.
Despite other crypto firms like Crypto.com already being ahead in implementing similar products, integrating USDC for stock buys has given stablecoins alpha status, bridging crypto volatility with traditional investments.
Overall, this crypto news reveals that Coinbase is betting big on this hybrid model. With COIN bleeding red and the premium teasing a comeback, the next months will test if institutions buy in or bail.
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