Coinbase is Primed for Another Winning Year in 25'

Coinbase is Primed for another Winning Year in 25’Zacks Rank #1 (Strong Buy) stock Coinbase (COIN) is one of the biggest and most well-known cryptocurrency exchange platforms globally. Through Coinbase, retail and institutional traders can buy and sell from a wide variety of crypto assets. Beyond its extensive digital asset offering, Coinbase is lauded as one of the most user-friendly platforms for amateur investors because of its straight-forward user interface (UI) and simple buying process. Coinbase also provides more sophisticated trading features for experienced users, including a professional trading platform and staking, which allows users to earn rewards for holding specific cryptocurrencies.2024 was a landmark year for COIN shares, which nearly doubled. Thus far in 2025, Coinbase investors have endured a pullback over the past few weeks, but the outlook on the stock remains very bullish. The company’s balance sheet is pristine (~5.7 billion in cash on hand), Bitcoin ETF aum continues to balloon (COIN is the custodial exchange for most BTC ETFs), and COIN continues to clobber Wall Street estimates (COIN has beat Zacks Consensus Estimates by an average of 341.36% over the past four quarters).Image Source: Zacks Investment ResearchBeyond what was mentioned above, three novel catalysts will help COIN shares to rise again in 2025, including:1.       The Trump Administration is Pro-CryptoCoinbase benefits from a new administration more than any other company. Gary Gensler’s SEC has been entangled with lawsuits against Coinbase for years. Brian Armstrong, Coinbase’s CEO, argues that the SEC has failed to provide “regulatory clarity,” and thus, there are no clear rules for crypto firms like Coinbase to follow. Meanwhile, in a recent interview on “The Joe Rogan Experience,” billionaire and crypto investor Marc Andreesen voiced concerns about the Consumer Financial Protection Bureau (CFPB), saying that debanking “has been happening to all the crypto entrepreneurs in the last four years” to protect big banks. With Trump coming to power and Armstrong named as a Trump crypto advisor, these concerns will vanish, and the crypto “animal spirits” will be unleashed.2.       The Crypto ETF Party Will Rage On2024 was the year that the Bitcoin ETF party began, and traditional Wall Street firms like Blackrock (BLK) got their piece of the growing crypto pie by launching Bitcoin ETFs. Blackrock’s iShares Bitcoin Trust ETF (IBIT) was the most successful ETF launch in history and is up 119.58%since its inception, as more institutional and retail investors than ever before gain access to the space.Image Source: Zacks Investment ResearchCoinbase, the central custodial exchange for most crypto-related ETFs, is a big beneficiary of crypto ETFs as the company collects lucrative exchange fees. With the success of Bitcoin and Ethereum ETFs, financial institutions are likely to expand their ETF offerings to other popular crypto assets like Solana and XRP.3.       Stablecoins: An Overlooked CatalystIn a recent podcast, billionaire Chamath Palihapitiya predicted that “Dollar-denominated stablecoins are going to be biggest winners of 2025.” Chamath pointed out that stablecoin usage at the end of the second quarter of 2024 accounted for more than $8 trillion of transaction volume! For those who don’t know, Coinbase and Circle operate one of the largest stable coins, USDC.Finally, Coinbase is likely to beat earnings when it reports in February because it has a best possible Zacks Rank combined with a positive Zacks Earnings ESP (Expected Surprise Prediction) score.  This powerful combination produces positive earnings surprises 70% of the time and above-average annual returns on average.Bottom LineA pro-crypto administration, continued crypto ETF rollout, and the growing popularity of stablecoins are reasons to remain bullish on Coinbase into 2025 and beyond.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. 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