US stock market, $17.2 billion outflow...Coinbase (COIN) surges alone

▲ US stock market, Coinbase (COIN), Bitcoin (BTC), Ethereum (ETH), Cryptocurrency/AI generated image

Coinbase (COIN) surged 18% in five trading days, even as $17.2 billion exited US equity funds. Cryptocurrency-related stocks are showing the opposite trend amidst warnings of risk-asset avoidance.

According to crypto media outlet Coingape on July 3 (local time), Coinbase shares closed at $165 on July 2, up 3.92%. Bank of America (BofA) warned that investors are exiting US stocks at the fastest pace since March.

According to a Bank of America client memo cited by Bloomberg, US equity funds saw a net outflow of $17.2 billion in the week ending July 1. This fund outflow is the first since March. In contrast, Japanese stocks and Japanese-listed funds saw an inflow of $1.9 billion during the same period.

Despite the outflow of funds from the US stock market, Coinbase shares rebounded strongly. The stock rose from $139 on June 26 to $165 on July 3. The five-day gain reached 18%. On the same day, MicroStrategy (MSTR) rose 7%, and Circle Internet Group (CRCL) rose 4%.

Technically, a breakthrough of $152 was presented as a key signal. Coinbase shares closed above the $152 resistance level on July 2. If it closes above this level one more time, it could test the June 22 high of $176. A double bottom pattern also formed after the $152 breakthrough.

However, further confirmation is needed for a short-term trend reversal. Coinbase shares have not yet surpassed the 50-day exponential moving average of $172. The buying dominance will become clear only after breaking through the $176 resistance level and settling above it for three consecutive trading days. ARK Invest's purchase of 68,366 Coinbase shares bolstered the bullish argument.

European regulatory variables were also included in the stock outlook. Some cryptocurrency companies that did not meet the standards of the European Union's Markets in Crypto-Assets (MiCA) regulation left the European market after the July 1 deadline. Coinbase was among the companies that remained. The media reported that Coinbase is eyeing the vacuum created by Binance's withdrawal from the EU and is offering a 5% bonus to customers who transfer funds.

[Article Summary]

-Despite $17.2 billion exiting US equity funds, Coinbase shares rose 18% over five trading days.

-Coinbase shares broke through the $152 resistance level, with $176 and the $172 50-day exponential moving average presented as the next hurdles.

-Following the implementation of the EU's MiCA regulation, Coinbase is expected to see further growth by remaining in the European market and implementing customer acquisition strategies.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*