Coinbase (COIN) Surges 9% Despite Wall Street's '30-Day Crash' Warning

▲ Coinbase (COIN), cryptocurrency trading, financial market/AI generated image

Although a warning emerged from Wall Street that the stock market could falter within 30 days, Coinbase Global (COIN) soared over 9% in a single day, showing a completely opposite trend.

According to cryptocurrency media outlet BeInCrypto on September 14 (local time), Coinbase shares jumped about 8% during Monday's trading session. During the same period, a fund tracking 500 large-cap U.S. stocks fell by 0.8%. This divergent trend emerged immediately after Mike Wilson, Chief U.S. Equity Strategist at Morgan Stanley, warned of a potential stock market plunge within 30 days.

The risk factor identified by Wilson was not artificial intelligence (AI) but oil prices. He stated, “If oil prices rise to $120, $130, or even $140 within the next 30 days, it will absorb liquidity.” His assessment is that high oil prices could put pressure on market liquidity and shock the overall stock market.

Coinbase's rise was also influenced by an upgrade in investment opinion from investment bank Compass Point. Analyst Ed Engel raised Coinbase's investment opinion from "sell" to "neutral" and set a price target of $177. However, this was not a conversion to a "buy" rating. Engel assessed that while the cryptocurrency market cycle and EBITDA trends are improving, price and margin pressures due to increased competition remain a burden.

Policy variables also remain. Engel's investment decision reflected the U.S. cryptocurrency market structure bill, which is awaiting a Senate vote this week, as a key variable. The bill outlines the roles of regulatory agencies that will oversee the cryptocurrency market. Engel predicted that the bill would not pass in this vote.

Wall Street's outlook on Coinbase is sharply divided. Morgan Stanley initiated coverage on Coinbase on September 10 with a price target of $250. The average price target suggested by 28 analysts is $201, with individual forecasts ranging from a low of $95 to a high of $330. On the same day, Marathon Digital Holdings (MARA) fell 2% following a downgrade from JPMorgan.

[Key Article Summary]

-Mike Wilson of Morgan Stanley warned that a surge in oil prices could pressure liquidity and cause a stock market shock within the next 30 days.

-Coinbase (COIN) surged over 9% on the same day, and Compass Point upgraded its investment opinion from "sell" to "neutral."

-Wall Street's price targets for Coinbase range from $95 to $330, indicating widely divergent investment opinions.

*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.*