Coinbase stock has climbed nearly 19% in the past five trading sessions even as Bank of America says investors are pulling money out of U.S. equities at the fastest pace since March.
Summary
- Coinbase has rallied nearly 19% in five trading days despite Bank of America reporting $17.2 billion in U.S. equity fund outflows.
- The exchange is expanding its European presence under MiCA while offering a 5% transfer bonus to attract users after rivals exited.
- Technical indicators show improving momentum, with Coinbase testing key trendline resistance near the $170 Fibonacci level.
According to a Bloomberg report, Bank of America told clients that U.S. equity funds recorded $17.2 billion in outflows during the week ending July 1, the first weekly withdrawals since March.
The bank’s note also showed that Japanese equity funds attracted $1.9 billion over the same period, their strongest weekly inflows since May, suggesting that investors are rotating capital away from U.S. stocks and into Japan.
Despite that backdrop, Coinbase Global has continued to outperform. The stock closed 3.92% higher at $165 on July 2 and has rallied from about $139 on June 26, extending its five-day gain to roughly 19%.
The rally has not been limited to Coinbase. Crypto-linked equities also advanced alongside the recovery in digital asset prices, with Strategy (MSTR) gaining around 7% and Circle (CRCL) adding nearly 4% during July 2 trading.
Europe expansion adds another growth catalyst
Alongside improving market sentiment, Coinbase is positioning itself to capture new business in Europe following the implementation of the Markets in Crypto-Assets framework.
According to a crypto.news report, several crypto firms that did not comply with MiCA requirements exited the European market after the July 1 deadline, while Coinbase remained operational under the new regulatory regime. The report noted that the exchange is attempting to attract users affected by those departures by offering a 5% transfer bonus to customers who move assets onto its platform.
If Coinbase succeeds in onboarding a meaningful share of those users, the increase in trading activity and transaction fees could support revenue during the July-to-September quarter, although the company has not disclosed any projections tied to the promotion.
Institutional investors have also continued to add exposure. ARK Invest, led by Cathie Wood, recently purchased 68,366 Coinbase shares, reinforcing confidence in the exchange even as sentiment toward U.S. equities has weakened.
Technical indicators point to improving momentum
From a technical standpoint, Coinbase shares are attempting to reverse the downtrend that has been in place since early May.
On the 4-hour chart, the stock has rebounded above the 78.6% Fibonacci retracement level near $156.9 and is now testing a descending trendline that has repeatedly rejected previous rallies. A decisive breakout above that trendline could strengthen the recovery and open the door to the 61.8% Fibonacci level at $170.9, followed by $180.7, which aligns with the 50% retracement of the May-to-June decline.
Momentum indicators are also improving. The MACD has produced a bullish crossover, while the histogram has turned positive, indicating that buying pressure is increasing after several weeks of weakness.
At the same time, the Supertrend indicator remains in bullish territory, with support positioned near $144.8. Holding above both the Fibonacci support and the Supertrend could encourage buyers to continue challenging higher resistance levels.
However, failure to break the descending trendline may leave Coinbase vulnerable to another pullback toward the $156.9 support area before buyers make another attempt to resume the recovery.
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