Coinbase Hits 3-Year High: Cathie Wood's Top Pick Surges As Bitcoin Rockets Past $72,000
Portfolio Pulse from Johnny Rice
Coinbase (NASDAQ:COIN) shares hit a 3-year high as Bitcoin surpasses $72,000, driving renewed interest in crypto. COIN's recovery is attributed to exceeding earnings expectations and cost-cutting measures, leading to a nearly 60% increase in stock price. Goldman Sachs raised COIN's price target to $282. Cathie Wood's ARK Innovation ETF (NYSE:ARKK), where COIN is the largest holding, benefits from this surge. ARKK's leveraged counterpart, AXS 2X Innovation ETF (NASDAQ:TARK), and its inverse, AXS Short Innovation Daily ETF (NASDAQ:SARK), offer additional trading strategies.
March 12, 2024 | 2:10 pm
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NEGATIVE IMPACT
AXS Short Innovation Daily ETF offers an inverse performance to ARKK, targeting bearish traders.
SARK's inverse relationship to ARKK's performance means it could face short-term challenges if ARKK continues to benefit from COIN's surge.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
ARK Innovation ETF, with Coinbase as its largest holding, benefits from COIN's stock surge. COIN makes up over 11% of ARKK's fund.
Given COIN's significant weight in ARKK and its recent performance, ARKK is likely to experience positive short-term price movement.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Coinbase's stock hits a 3-year high amid Bitcoin's surge, with a nearly 60% increase since its February earnings report. Goldman Sachs raised its price target to $282.
The direct correlation between Bitcoin's price surge and Coinbase's stock performance, coupled with positive earnings and Goldman Sachs' upgraded target, suggests a strong short-term bullish outlook.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
AXS 2X Innovation ETF aims to return twice the daily return of ARKK, offering a leveraged position on ARKK's performance.
TARK's leveraged nature means it will benefit from ARKK's positive performance, especially with COIN's surge, but with increased volatility.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70