Dan Dolev, a senior analyst at Mizuho Americas, thinks that Coinbase volume is now “dead,” despite the fact that Bitcoin is increasing. The stern warning comes after the largest cryptocurrency gained 80% to significantly beat the stock market.
In an interview with CNBC, he said, “Coinbase’ volume is a reflection of retail trading and it is basically dead, that’s what is happening. Retail traders are key for Coinbase.” With a $30 price objective, Mizuho ranks the Coinbase stock as Underperform.
Dolev has a negative outlook for the shares of Coinbase, the top US bitcoin exchange. Dolev asserted in a research paper released earlier this week that the demise of FTX would not significantly benefit its competitors and that the black swan event signaled “a deteriorating industry.”
“We believe large institutional players are buying Bitcoin in hopes that retail would follow. Yet, retail seems uninterested. This is not a broad-based crypto renaissance. Investors excited about Bitcoin’s rally to $30,000 might be in for a rough awakening when they realize that it didn’t boost trading volumes at Coinbase,” he said, as reported by Barron’s.
The smallest holders account for the majority of the recent growth in Bitcoin wallets. According to Messari, the number of wallets holding at least 0.01 Bitcoin, or $300, has increased by more than 3% since the year 2023 began. Growth declines as wallet size increases: Wallets holding at least one Bitcoin have increased by about 1.5%, whereas those holding more than ten Bitcoin have increased by just 0.5%.
Centralized cryptocurrency exchanges are in crisis mode as a result of the FTX exchange’s collapse, which shocked the investment world.
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- Source: https://coinpedia.org/news/senior-analyst-explains-why-coinbase-volumes-are-dead-even-after-bitcoins-staggering-rally/
