27 June 2025
Updated 30 June
Updated 30 June
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Coinbase Shares Approach Overvaluation Threshold, Says 10x Research
Shares of Nasdaq-listed cryptocurrency exchange Coinbase (COIN) are nearing an overvaluation threshold, according to 10x Research’s Markus Thielen. He suggests a pair trade strategy: shorting COIN while going long on Bitcoin.
- Coinbase's trading volumes are not keeping pace with its share price rally.
- Current prices are approaching a +30% overvaluation threshold, indicating potential underperformance ahead.
- Thielen's analysis indicates 75% of COIN's price is linked to Bitcoin's price and trading volumes.
- Coinbase shares have increased by 84% over the past two months, compared to Bitcoin's 14% rise.
- The stock's valuation appears disconnected from crypto trading volumes, currently around $108 billion.
- Other market factors, including Circle’s IPO and Korean investor activity, seem priced in.
- Recent market reversals suggest Coinbase shares may be at risk of hitting a local top.