© Reuters Coinbase (COIN) Falls as Analyst Says Volumes are Drying Up Amid Crypto Fatigue

By Investing.com Staff

Coinbase (NASDAQ:) shares are down 7% in pre-open trading Wednesday following cautious comments from Mizuho Securities, competitive pressures from Binance, and renewed weakness in .

In a new note to clients today, Mizuho analyst Dan Dolev said recent trading patterns on Coinbase are pointing to potential crypto fatigue.

The analyst highlights that the average daily trading volume on the COIN platform on Bitcoin down-days was 15% higher than volumes on Bitcoin up-days. In recent months, however, down-day volumes are 42% higher than up-days, or nearly 3x vs. the prior ratio.

Dolev said investors should not get excited about the recent spike in volume. “We encourage investors to tame expectations as the rise in volumes during early June appears to be fading… COIN is still tracking 10-15% below 2Q consensus and ~30% below 1Q level,” he commented.

On the competitive front, Binance starts offering zero-fee trading in the U.S..

In addition to the above concerns, after a recent bounce off multi-year lows, Bitcoin prices are heading back to $20,000.

Source: Investor

LEAVE A REPLY

Please enter your comment!
Please enter your name here