Citi Bullish On Coinbase Post Ethereum Merge!
- Banking giant Citi is bullish on Ethereum (ETH) as the migration of the network from Proof of Work to Proof of Stake is almost complete
- An analyst at the firm said that the stock of Coinbase, a major crypto exchange, will be positively affected by the merge of the ETH network
One of the most talked-about events in the crypto world is the Ethereum Merge, which is very close to completion and a tentative date of mid-September has been provided by the developers. Moreover, according to a note from Citi, a banking firm, the stock of Coinbase will turn bullish the following month due to the merge.
In a note to its clients, seen by Seeking Alpha, Citi analyst Peter Christiansen confirmed that his eyesights are locked on the stock of Coinbase (COIN) which could turn bullish in September which will also mark the completion of the merge of the Ethereum network.
The analyst confirmed that he has been eyeing Coinbase’s stock for 90 days in an upside catalyst watch. Christiansen believes that there are “good developments brewing” in the Merge while a regulatory clarity might also been soon approaching from the US-listed cryptocurrency exchange.
The analyst adds that the Ethereum merge could “represent hundreds of millions of annual blockchain reward revenue for Coinbase (COIN)” followed by intriguing Web3 capabilities as well. The stock of Coinbase has been performing quite good recently as it doubled in June.
By August 4, the stock of Coinbase was trading at around $93 which means that the COIN stock might be turning bullish and aiming to break into an uptrend once again. However, it is currently 74% low from its all-time high witnessed in 2021. The lowest price of the stock in the last 52 weeks is $40 and it has since more than doubled its price.
However, the year 2022 has not been very favorable for the cryptocurrency exchange despite the Ethereum merge approaching as recently, investors filed a lawsuit against the exchange for potentially misleading them into buying the COIN stocks. The lawsuit claims that Coinbase made “materially false and misleading statements regarding the Company’s business, operations, and compliance policies.”
The firm had also recently landed in financial trouble as it laid of 18% of its employees as well. Meanwhile there Ethereum token has outperforming Bitcoin (BTC), the world’s biggest cryptocurrency, in the past month.