Coinbase stock price is down nearly 85% from its all-time high of $348.98 on Nov. 12, 2021.

Making the third investment in two months and fourth since November, Ark Invest acquired $9.2 million worth of COIN shares on Friday, media reports claimed.

In the latest round, the investment firm bought 162,325 COIN shares. In the previous two, on January 5 and 12, the company accumulated $5.8 million and $3.3 million worth of Coinbase shares, respectively. In December, Ark Invest bought $11.9 million worth of COIN.

On January 5, the day Ark Invest made its first major purchase of COIN shares this year, the stock closed the day down 11% at $33.53, while the next day, January 6, hit an all-time low of $31.95, suggesting that Ark Invest’s timing couldn’t have been better than this. The Jan. 12 purchase of COIN shares was made at $43.79 per share, and it came at a time when all the major BTC-led crypto assets were on the road to recovery.

Kraken Fears Pull COIN Down

After rising to $81 on February 2, nearly 95% in a month, Coinbase shares are once again on a downward spiral, particularly after the SEC crackdown on Kraken for offering “unregistered securities” in the participation services.

COIN closed down 14.13% on Thursday, the day Kraken announced the closure of its staking services for US investors, at $59.63 after starting at $68.51%.

Cryptocurrencies have found themselves in the crosshairs of regulatory authorities for their staking services after Kraken was fined $30 million by the Securities and Exchange Commission (SEC) for offering unregistered staking services in the US.

Brian Armstrong, CEO of Coinbase, has stated that the cryptocurrency exchange is willing to go to court to defend its own staking offer, and Wood has also spoken out about the actions of the Securities and Exchange Commission, tweeting the following:

“So, activity moves to offshore exchanges or to self-custody, self-sovereignty, and self-control? Decentralization wins. Great! Given regulatory arbitration, however, US exchanges lose to foreign exchanges, not so good for US competitiveness in the crypto revolutions, in my view.”

Recession Impact on Coinbase

Coinbase, hit by the market downturn, has cut its headcount by more than 2,000 since June 2022. The first round of layoffs came in June, when 18% or 1,100 employees were laid off, while on January 10, 1,100 employees were let go.

On Jan. 26, De Nederlandsche Bank (DNB), the central bank of the Netherlands, reportedly fined Coinbase $3.6 million for failing to register its services in the country between November 2020 and August 2022.

Priced at $250, Coinbase shares were listed on Nasdaq on April 14, 2021. Gaining over 31%, COIN closed the opening day at over $328. Right now, the stock is trading almost 85% below its all-time high of $348.98.

By Audy Castaneda

It was a bearish Monday, with BTC slipping 0.11% to end the day at $21,773. Regulatory risk and the SEC move against Paxos and Binance USD (BUSD) weighed on investor sentiment.

On Monday, bitcoin (BTC) fell 0.11%. Following a 0.32% drop on Sunday, BTC ended the day at $21,773m below $22,000, for the fifth session in a row.

After a choppy start to the day, BTC surged to a mid-morning high of $21,905. Missing the first major resistance level (R1) at $22,039, BTC slid to a late-afternoon low of $21,354. BTC briefly fell through the first major support level (S1) at $21,609 and the second major support level (S2) at $21,423, before ending the day at $21,773.

SEC Move Against Paxos and Binance USD Left BTC in the Red

There were no US economic indicators to distract investors on Monday. Following the news that Kraken has reached a settlement with the SEC and the cessation of US cryptocurrency staking services, Paxos and Binance USD (BUSD) became the latest targets of the SEC.

On Monday, news came that the SEC was preparing to sue Paxos over the issuance and listing of Binance USD (BUSD). The SEC cited that the company violated investor protection laws.

Paxos issued a statement in response to Wells’ notice, saying it is prepared to litigate if necessary. Paxos also stated that it categorically disagrees with the SEC staff that BUSD is not a security under federal securities laws.

The SEC’s moves against cryptocurrency staking and stablecoins will create even more investor uncertainty and market volatility. However, BTC’s downside was modest, with the NASDAQ Composite Index providing support ahead of today’s US CPI report. On Monday, the NASDAQ rose 1.48%.

Bitcoin (BTC) Price Action – Technical Indicators

BTC was down 0.07% to $21,757. A mixed start to the day saw BTC drop to an initial low of $21,739 before rising to a high of $21,805.

BTC needs to avoid a drop through the $21,677 pivot to target the first major resistance level (R1) at $22,001. A return to $22,000 would signal a breakout session. Crypto news wires and US stats need to be crypto-friendly to support a prolonged rally.

In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $22,228. The third major resistance level (R3) sits at $22,779.

A drop through the pivot would bring the first major support level (S1) into play at $21,450. However, barring another risk-driven cryptocurrency selloff, BTC should avoid less than $21,000. The second major support level (S2) at $21,126 should cap the downside. The third major support level (S3) sits at $20,575.

A hold above the 200-day EMA (21,714) would support a break from R1 ($22,001) to target the 50-day EMA ($22,201) and R2 ($22,228). However, a drop through the 200-day EMA ($21,714) would bring S1 ($21,450) and less than $21,000 into view. A move through the 50-day EMA would send a bullish signal.

By Audy Castaneda

It was a bearish session on Sunday for Ethereum (ETH). Fed fear and US regulatory risk continued to weigh on investor confidence.

Ethereum (ETH) fell 1.56% on Sunday. Partially reversing a 1.72% gain on Saturday, ETH ended the week down 7.00% at $1,515. ETH revisited below $1,500 for the second time since January 14.

After a morning of range bound, ETH rose to a high of $1,548 by late afternoon. Failing to reach the first major resistance level (R1) at $1,554, ETH fell to a late low of $1,494. ETH fell through the first major support level (S1) at $1515, before ending the day at $1515.

Ethereum Hard Fork Overshadowed by the Fed and SEC

On Sunday, market sentiment towards the latest SEC regulatory moves in the digital asset space continued to weigh. With the SEC targeting cryptocurrency staking services, increased regulatory uncertainty will continue to be a hurdle until an appropriate regulatory framework is put in place.

Fed Fear added to bearish sentiment as investors await US CPI Report. A pick up in US inflation pressure would support a more aggressive policy outlook and an interest rate spike above 5%.

The bearish sentiment overshadowed the hard news from Ethereum Shanghai. On Friday, Ethereum announced the second round of testing ETH withdrawals staked. Today, investors should continue to monitor the crypto news wires. While the Shanghai hard fork updates will provide guidance, SEC activity and FOMC members’ talks are likely to draw more interest.

With tomorrow’s CPI report in the spotlight, the NASDAQ Composite Index is expected to influence the afternoon session.

Ethereum (ETH) Price Action – Technical Indicators

ETH rose 0.24% to $1,519. On a mixed morning, ETH rose to an initial high of $1,525 before falling to a low of $1,497.

ETH needs to avoid a drop through the $1,519 pivot to target the first major resistance level (R1) at $1,544, and Sunday’s high of $1,548. A return to $1,550 would signal a breakout session. However, updates from the Shanghai hard fork and crypto news leads should support ETH to support a breakout.

A drop through the pivot would bring the first major support level (S1) into play at $1,490. However, barring another crypto market sell-off, ETH should avoid less than $1,450. The second major support level (S2) at $1,465 should cap the downside. The third major support level (S3) sits at $1,411.

A move through R1 ($1,544) and the 200-day EMA (1,545) would give the bulls a run to R2 ($1,573) and the 50-day EMA ($1,575). However, a failure to move through the 200 day EMA ($1,545) would leave S1 ($1,490) in the offing. A move through the 50 day EMA would send a bullish signal.

By Audy Castaneda

Bitcoin has become an alternative currency and store of value in several countries in recent years, despite its sharp price fluctuations.

Bitcoin has been known to be more accepted in certain countries than other Western countries, and not just since it was recognized as a national currency in El Salvador. This is also because Bitcoin is a real help for many people as an alternative currency.

Especially in developing countries, their own currencies are highly unstable and massive inflation rates have been a part of everyday life for years.

In addition, there are great difficulties for the population of these countries to make payments within the country or abroad. Banks and payment service providers charge extremely high fees for transactions in these countries. Additionally, certain countries are often isolated from international payment systems such as SEPA.

Bitcoin offers an open and decentralized alternative for payment transactions in these countries. In case of extremely high inflation, it can be used as a store of value service, which can only be purchased through a simple Internet connection.

Bitcoin can bring many benefits in different countries. In certain countries, it may become essential in the future and solve major problems of the population. Below are three countries that Bitcoin could save in the future.

Nigeria

In Nigeria, Bitcoin was trading on exchanges at an average of $40,000. This is due to the fact that the government wants to establish eNaira, the electronic currency of Nigeria.

The new digital currency of the central bank is viewed with great criticism by the population. Therefore, in recent weeks, extremely low withdrawal limits have been set for physical money. Nigerians are now taking refuge in bitcoin to escape the control of centralized digital money.

Argentina

Europe had to deal with high inflation in 2022. While inflation rose to 10% in Germany, Argentina has to deal with inflation rates of over 80%.

That is why Bitcoin is booming in South American countries, and more and more people are taking refuge in the cryptocurrency. Argentina and Brazil also want to introduce their own currency and break away from the US dollar. Bitcoin, or a currency that is covered by BTC, is slowly coming into the discussion.

Iran

In Iran, a large part of the population is fighting against the ruling regime. However, the population problems are not only due to oppression within the country. As an Enemy of the US, Iran is locked out of the US dollar system, which poses extreme economic problems.

Therefore, Bitcoin can serve as an alternative payment network that is not controlled by a central authority and any country. In the future, the population of Iran will be able to use Bitcoin economically without control or censorship.

By Audy Castaneda