In 2022 and 2023, the cryptocurrency market faced a downturn due to high interest rates, but it has shown signs of resurgence this year. Bitcoin’s price has surged by nearly 50% year-to-date following the approval of the first spot price exchange-traded funds (ETFs) by U.S. regulators and anticipation surrounding the upcoming halving event, which will reduce Bitcoin’s supply growth. Ethereum’s price has also risen by over 40%, fueled by optimism that regulators will approve spot price ETFs for Ethereum and the ongoing updates to the Ethereum network.
This recovery has reignited investor interest in cryptocurrency-related stocks such as Coinbase Global, Marathon Digital, and MicroStrategy. These companies offer straightforward opportunities to capitalize on the expanding crypto market and could potentially experience significant growth by the end of the decade.
Coinbase Global, a leading cryptocurrency exchange, derives a significant portion of its trading volume from Bitcoin, Ethereum, and other crypto assets. Despite facing challenges during the past two years due to rising interest rates, the recent surge in Bitcoin and Ethereum prices is expected to attract more retail investors and drive growth for Coinbase.
Analysts project moderate revenue and earnings growth for Coinbase from 2023 to 2026, with estimates indicating reasonable valuation based on the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). However, if cryptocurrencies like Bitcoin and Ethereum continue to rise as anticipated, Coinbase could exceed these conservative forecasts and deliver strong performance in the market by 2030.