Carlsquare/Vontobel weekly trading note: S&P500 and Nasdaq trading at overbought levels
June 19, 2024 at 08:07 am
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In this week´s case we ask ourselves whether the Coinbase is being fuelled by Bitcoin or whether it is just hot air from the Altcoin hype? After all, there is a risk of the cryptocurrency market consolidating, with only a few winners remaining. From a technical analysis and RSI view, the US equity indices are currently trading at overbought levels.
Coinbase's revenue saw a significant boost in the first quarter, more than doubling year-over-year to reach $1.59 billion. This growth was largely driven by a surge in transactional revenue, which nearly tripled. Since Coinbase generates roughly two-thirds of its income from trading spreads, this suggests a significant increase in trading activity. While Coinbase has enjoyed a significant run-up this year, its current valuation raises concerns.
From a technical point of view, the RSI for both the S&P500 and the Nasdaq are floating in overbought territory.
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Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides platform, which enables its users to engage in a variety of activities, including discovering, trading, staking, storing, spending, earning and using their crypto assets. The Company offers a suite of products and services that are designed to meet the distinct needs of its three customer groups: consumers, which includes individual retail user customers seeking to discover or trade crypto assets and engage in on chain activities; institutions, which are businesses that include market makers, asset managers, hedge funds, banks, wealth platforms, registered investment advisors, payment platforms, and public and private corporations; developers, which comprise of developers, creators, merchants, crypto asset issuers, organizations and financial institutions, and other groups building decentralized protocols, applications, products, or other services on chain.
COINBASE GLOBAL, INC. 
