Goldman Sachs has recently upgraded its rating on Coinbase from sell to neutral, with a new price target of $282 for the stock. This change reflects a shift in Goldman Sachs’ perspective on Coinbase, influenced by the bullish trends in the cryptocurrency market.

According to a report by blockchain analysis firm Kaiko, Coinbase’s market share in the U.S. has seen a significant increase of 13% following the SEC’s approval of 11 new spot Bitcoin ETFs in January. This has positioned Coinbase as a dominant player in the U.S. market, with its BTC market share climbing from 47% to 60% over the past 3 months.

The surge in Coinbase’s stock rating aligns with the overall increase in cryptocurrency prices and a notable rise in daily trading volumes on the platform. On January 11, Coinbase witnessed nearly $5 billion in trading volume, surpassing its 2023 volume and nearing the volume recorded on the day FTX filed for bankruptcy in November 2022.

Despite experiencing technical difficulties during high-volatility periods, Coinbase achieved a record volume of approximately $12 billion on March 6. As a result, Goldman Sachs has raised its revenue forecast for Coinbase by 48%.

In mid-February, Coinbase reported a profit of $273.4 million for the quarter, marking a significant improvement over the $557 million loss reported in the same quarter the previous year. This turnaround from a $2 million loss in the third quarter of 2023 showcases the platform’s growth and resilience in the current market conditions.

Goldman Sachs’ previous concerns about the long-term viability of the cryptocurrency market have been reassessed in light of recent market performance and adoption rates. The new price target of $282 suggests a more positive short-term outlook for Coinbase amidst the current market rally.

For more cryptocurrency news and updates, continue exploring Global Crypto News.

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