US Stock Market Sees $17.2 Billion Exit...Coinbase (COIN) Surges Alone

▲ US Stock Market, Coinbase (COIN), Bitcoin (BTC), Ethereum (ETH), Cryptocurrency/AI Generated Image

Even as $17.2 billion exited US equity funds, Coinbase (Coinbase, COIN) surged 18% in just five trading days. Amid warnings of risk-asset avoidance, cryptocurrency-related stocks are showing the opposite trend.

According to cryptocurrency media outlet Coingape on July 3 (local time), Coinbase shares closed at $165 on July 2, up 3.92%. Bank of America (Bank of America, BofA) warned that investors are exiting US stocks at the fastest pace since March.

According to a Bank of America client memo cited by Bloomberg, US equity funds saw a net outflow of $17.2 billion in the week ending July 1. This fund outflow is the first since March. In contrast, Japanese stocks and Japanese-listed funds saw an inflow of $1.9 billion during the same period.

Despite the capital outflow from the US stock market, Coinbase shares rebounded strongly. The stock rose from $139 on June 26 to $165 on July 3. The five-day gain reached 18%. On the same day, Strategy (Strategy, MSTR) rose 7%, and Circle Internet Group (Circle Internet Group, CRCL) rose 4%.

Technically, a breakout above $152 was presented as a key signal. Coinbase shares closed above the $152 resistance level on July 2. If it closes above this level one more time, it could test the June 22 high of $176. A double-bottom pattern also formed after the $152 breakout.

However, further confirmation is needed for a short-term trend reversal. Coinbase shares have not yet surpassed the 50-day exponential moving average of $172. A clear buying advantage will only be established if it breaks through the $176 resistance level and settles above it for three consecutive trading days. ARK Invest (ARK Invest)'s purchase of 68,366 Coinbase shares bolstered the bullish argument.

European regulatory variables were also included in the stock outlook. Some cryptocurrency companies that failed to meet the EU's Markets in Crypto-Assets (MiCA) regulation standards left the European market after the July 1 deadline. Coinbase was among the companies that remained. The media reported that Coinbase is eyeing the vacuum created by Binance (Binance)'s withdrawal from the EU and is offering a 5% bonus to customers who transfer funds.

[Article Key Summary]

-Despite $17.2 billion exiting US equity funds, Coinbase shares rose 18% over five trading days.

-Coinbase shares broke through the $152 resistance level, with $176 and the $172 50-day exponential moving average presented as the next hurdles.

-Following the implementation of the EU's Markets in Crypto-Assets (MiCA) regulation, Coinbase is expected to see further growth through its strategy of remaining in the European market and attracting customers.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*