Is Coinbase Stock at Risk as Schwab Outlines Plans to Offer Crypto Trading Services

Key Insights

• Coinbase stock price rebounded as the crypto market rally continued.
• There are concerns that Schwab will take market share from it soon.
• The stock may continue rising in the coming days if the crypto market rally continues.

Coinbase’s stock price has rebounded over the past few days, reaching its highest level since January 23rd as the crypto and equities markets soared. COIN jumped to $215, up by over 53% from its lowest point this year. So, will this rebound continue as Schwab prepares to launch its crypto trading solutions?

Schwab to Launch Crypto Trading on its Platform

Coinbase and other American crypto exchanges are preparing for more competition as Charles Schwab, a top financial services company, prepares to launch its crypto trading services.

This is a notable development, as Schwab is one of the largest companies in its industry, with over 47.2 million active accounts and $11.7 trillion in assets under management (AUM).

The fear among investors is that Schwab will use its large customer base to poach customers from Coinbase. One reason this might happen is that Coinbase customers who also use Schwab may decide to consolidate their assets with Schwab.

Another fear is that increased competition may force Coinbase to cut its fees, which will eventually affect its margins.

Schwab joins other large brokerages that have launched their crypto trading solutions in the past few years. For example, Robinhood has become a major player in the crypto industry, both directly and through its recent $200 million acquisition of Bitstamp.

Webull, a top Chinese company, and SoFi, a popular company among young people, have both added crypto solutions. This move will drive more competition for companies like Coinbase and Kraken.

Still, data shows that Coinbase has maintained its market share in the United States despite these developments and has not yet slashed its fees. The most recent results showed that the company’s customer count remains steady, with the assets under custody rising to $376 billion.

Coinbase Stock Has Some Bullish Catalysts

COIN stock has several major catalysts that could drive a resurgence in the coming weeks. For example, it may benefit from the potential crypto market rally, especially when the Iran war ends.

Bitcoin has remained above the key resistance level at $75,000, while most altcoins, such as Ethereum, Solana, and HYPE, have continued to rise. Also, more data shows that spot Bitcoin, XRP, and Solana ETFs have continued to add assets over the past few months.

Another top catalyst is that Coinbase is positioning itself for the upcoming agentic shopping, which analysts believe will continue growing in the coming years.

Agentic shopping is a scenario in which AI agents find products, negotiate prices, and execute transactions among themselves. In a recent statement, Brian Armstrong, the company’s CEO, noted that it was building infrastructure for those solutions.

Another catalyst is that the company has positioned itself as a major player in the stablecoin industry through its partnership with Circle. The deal allows Coinbase to retain all the interest it generates by investing stablecoins on its platform.

Its most recent results showed that its stablecoin revenue rose to over $1.34 billion last year, up from $910 billion the previous year. In contrast, Circle made $2.7 billion in the same period.

COIN Stock Price Technical Analysis

The three-day chart shows that the COIN share price has rebounded in the past few days and is now trading at its highest level since January. This rebound happened as the stock neared the key support level at $145, its lowest level in September 2024 and April last year. It was also its lowest level in February this year.

The stock will likely continue rising in the next few days, especially if the crypto market continues rising. If this happens, it will rise to the next key resistance level at $250.

On the flip side, a drop below the key support level at $145 will invalidate the bullish outlook. Such a move will lead to further downside, potentially to the key support level at $100, about 50% below the current level.

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