Mizuho: While Bitcoin is rising, Coinbase trading volume has decreased, maintaining a “underperformance” rating

According to reports, Mizuho stated that investors’ expectations that the rise of the Bitcoin to $30000 will boost the trading volume of Coinbase (COIN. US) may face a difficult awakening. Analysts at the bank stated that Coinbase had an average daily trading volume of less than $1 billion in April, compared to $1.6 billion in March. The bank believes that large institutional investors are buying Bitcoin and hopes that retail investors can follow suit, but retail investors seem not interested. The bank stated that despite Bitcoin’s rise, Coinbase, as the “preferred platform” for retail investors, has seen a decline in trading volume. The bank maintains a ‘underperformance’ rating on Coinbase, with a target price of $30.

Mizuho: While Bitcoin is rising, Coinbase trading volume has decreased, maintaining a “underperformance” rating

I. Introduction
II. Mizuho’s Statement on Coinbase Trading Volume
III. Analysis of Coinbase’s Trading Volume in April and March
IV. Institutional vs Retail Investors
V. Factors Affecting Retail Investor Interest in Bitcoin Trading
VI. Reasons Why Coinbase is Losing Trading Volume
VII. Mizuho’s Ratings and Target Price for Coinbase
VIII. Conclusion
IX. FAQs

Article:

**Mizuho Predicts Coinbase’s Trading Volume May Not Increase Despite Bitcoin’s Rise**
Bitcoin’s recent rise to $30,000 has been a topic of discussion among investors, with many expecting it to boost the trading volume of Coinbase, a popular cryptocurrency exchange. However, according to a statement from Mizuho, these expectations may face a difficult awakening.
Mizuho analysts have expressed their belief that Coinbase may not see a rise in its trading volume, despite the surge in Bitcoin’s value. In fact, the bank revealed that Coinbase’s average daily trading volume was less than $1 billion in April, which is a decrease of $0.6 billion from March’s numbers.

Analysis of Coinbase’s Trading Volume

Coinbase is considered the preferred platform for retail investors in the cryptocurrency market, but it is losing ground in this area. The analysts believe that large institutional investors are the ones driving Bitcoin’s price up, while retail investors are hesitant to join in.

Institutional vs Retail Investors

There has been a growing trend of institutional investors flocking towards Bitcoin. Many large corporations, such as MicroStrategy Inc. and Tesla Inc., have invested heavily in the cryptocurrency market. These corporations’ purchases can quickly raise the value of Bitcoin, making it harder for retail investors to afford.

Factors Affecting Retail Investor Interest in Bitcoin Trading

The cryptocurrency market is incredibly volatile, and this volatility is a major reason why retail investors are hesitant to invest in Bitcoin. They are afraid of losing their money. Moreover, there is the perception that the market is not regulated enough to provide a sense of stability. Additionally, the difficulty of accessing cryptocurrency markets also presents a barrier to entry for many retail investors.

Reasons Why Coinbase is Losing Trading Volume

Despite being the preferred platform for many retail investors, Coinbase has witnessed a decline in its trading volume. There are a few reasons behind this decline. First, Coinbase’s transaction fees are comparatively high, discouraging traders from using the platform. Second, Coinbase’s user interface is not very user-friendly, requiring more steps to complete a transaction, which dissuades retail traders from using the platform. Third, Coinbase has limited cryptocurrency offerings compared to its competitors, which can discourage traders from using the platform for their preferred cryptocurrencies.

Mizuho’s Ratings and Target Price for Coinbase

Mizuho has maintained an ‘underperformance’ rating on Coinbase and set a target price of $30. The bank believes that despite Bitcoin’s rise, Coinbase’s primary user-base, retail investors, have lost interest in trading cryptocurrencies. The bank warns that investors’ expectations of Coinbase’s trading volume boost may not be realized due to the lack of interest from retail traders.

Conclusion

Mizuho’s statement on Coinbase’s trading volume suggests that investors may not be able to realize their expectations, despite Bitcoin’s rise. Large institutional investors are driving Bitcoin’s price up, but retail investors are not following suit on cryptocurrency trading platforms like Coinbase. Retail investors are deterred by high fees, poor user interface, and limited cryptocurrency offerings. Mizuho has reappraised Coinbase’s rating and has set a target price below the current value to reflect its forecasted underperformance.

FAQs

**Q1. What is the current value of Coinbase trading volume?**
As of April, Coinbase’s average daily trading volume was less than $1 billion, which is a decline of $0.6 billion from March’s numbers.
**Q2. Why are retail investors hesitant to invest in Bitcoin?**
Retail investors are hesitant to invest in Bitcoin because the cryptocurrency market is highly volatile, and there is no regulatory body overseeing it. Bitcoin trading is complex, and the process of accessing cryptocurrency markets can be difficult.
**Q3. Why has Coinbase lost trading volume despite being the preferred platform for retail investors?**
Coinbase has lost trading volume due to high transaction fees, a poor user interface, and a limited number of cryptocurrencies offered compared to its competitors.
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