Coinbase seen benefiting from possible medium-term jump in Bitcoin price - Mizuho

Investing.com - Crypto exchange Coinbase could benefit from possible growth in the price of Bitcoin grow over the medium-term fueled by rising adoption of the world's most popular cryptocurrency, according to analysts at Mizuho (NYSE: MFG).

In a note to clients, the analysts led by Dan Dolev argued that global enthusiasm surrounding the finite number of Bitcoins in existence as well as a more favorable regulatory environment under new U.S. President Donald Trump "are likely sufficient catalysts for price appreciation". Assuming adoption growth continues "on a similar trajectory", the analysts estimated that the annual price increase of Bitcoin by 2027 could be between 25% to 30%.

The trend may bode well for Coinbase (NASDAQ: COIN), which the analysts said has a strong correlation with the cost of Bitcoin. They subsequently raised their rating of the stock to "neutral" from "underperform".

Bitcoin slipped slightly on Wednesday as bargain buying after a recent rout provided only limited support and focus shifted to an impending Federal Reserve interest rate decision. By 07:52 ET (12:52 GMT), Bitcoin had fallen 0.2% to $102,393.2.

Market sentiment remained somewhat fragile after investor concerns over the implications a low-cost artificial intelligence model from Chinese start-up DeepSeek battered global financial markets on Monday. A jump in popularity of the model called into question the necessity of massive AI spending plans put forward by tech industry giants.

Nasdaq 100 futures on Wednesday pointed to an extension in the tech-heavy index's rebound from the sharp sell-off earlier in the week. Equities on Wall Street stabilized on Tuesday, with the Nasdaq Composite gaining 392 points or 2.0%.

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