Coinbase (NASDAQ: COIN) stock gained by 3.92% on July 2, to close trading at $165. The gains come despite the Bank of America (BofA) saying that investors are turning away from US stocks at the fastest pace since March.
Bank of America Says Investors Are Fleeing From US Stocks
A report by Bloomberg noted that the Bank of America sent a note to clients informing them that investors are rotating out of US stocks after US equity funds saw $17.2 billion in outflows in the week ending July 1.
The $17.2 billion marked the first outflows seen by US equity funds since March.
The note added that the Japanese stock market has seen an opposite trend where inflows reached $1.9 billion in the week ending July 1.
These inflows to stocks and funds listed in Japan were the highest seen since May per BofA.
The disparity suggests that investors could be rotating from US stocks to Japanese stocks.
Despite this ongoing sell-off in US equities and funds, COIN stock price is up by 18% in five trading days after moving from $139 on June 26 to $165 on July 3.
The gains made by Coinbase shares reflect the uptrend being seen in the broader crypto market because other crypto stocks like MSTR and CRCL gained by 7% and 4%, respectively, on July 2.
COIN Stock Outlook as Key Resistance Breaks
COIN stock price closed trading on July 2 above the resistance of $152. Making one more daily close above this resistance could push the price to the June 22 high of $176.
Coinbase shares have also created a double bottom pattern by moving above $152. If the price can move above the resistance of $176 and make three straight daily closes above it, it will suggest that bulls are tightening their grip.
The AO bars that have turned green despite being negative also suggest that bears are losing their grip, supporting the bull case that COIN stock could reach $176.
However, there is still need for caution because the price of these shares have yet to move above the 50-day EMA level of $172. Moving above the 50-day EMA of $172 will suggest that the short-term trend is favoring bulls.
Cathie Wood is among the bulls that are betting that the price of COIN stock will rise after ARK Invest bought 68,366 COIN shares.
Coinbase’s MiCA Compliance Could Boost Stock Price
CoinGape reported that crypto firms that failed to comply with MiCA guidelines have left Europe after the July 1 deadline reached, but Coinbase is among the firms that are remaining.
Coinbase is looking to fill the gap left behind by Binance after its exit from the EU, and taking over Binance’s market share could increase the exchange’s revenues in the quarter between July and September 2026.
Coinbase is trying to lure these investors by saying it will give out a 5% transfer bonus to those who move their funds to the exchange. Onboarding them to Coinbase will increase the amount of fees the exchange collects, and this could reflect in its Q3 earnings.
