Coinbase (COIN) is at a disadvantage compared to Binance. It follows all of the SEC’s rules while Binance is free from them, at least for now.
On Apr. 25, 2023, Coinbase sued SEC. It sought to compel the SEC to respond with yes or no on its July 2022 petition. It had asked the regulator to use its formal rulemaking process to guide the crypto industry.
The headwinds from SEC denying Coinbase’s petition are hurting shareholders. COIN stock could not break out above $80 in 2023. It now trades at $53.79 while Bitcoin rebounds.
Bitcoin (BTC-USD) is increasingly attractive as Coinbase struggles and as the stock market looks for an interest rate cut. Underlying this dynamic is the failure of First Republic Bank (FRC). The shutdown of Silicon Bank and Signature Bank also increases the attractiveness of BTC.
Investors seeking diversification away from the fiat US dollar currency are accumulating Bitcoin. As long as they avoid risky crypto exchange platforms, BTC is a good alternative.
Ethereum (ETH) is the second most popular crypto. It has the advantage of having less volatility than Bitcoin.
Bitcoin’s 7% weekly rise is only the start. Investors are seeking a risk-off asset that behaves like gold. As Coinbase legitimizes the crypto platform further, Bitcoin should set up a strong uptrend from here.
