According to Goldman Sachs Coinbase is a Tactical Trade, Predicts Q2 Earnings Beat

The investment bank’s client note said that people often talk about crypto market volatility. However, it is a tactical trade. Volatility can pay off massive. The investment bank further added that Coinbase’s second-quarter earnings will outperform the first quarter of this financial year.

As per bank analysis, Coinbase is in good shape to beat Wall Street’s prediction for its financial performance for the second quarter of the Financial Year 2021. The Bank wrote in its memo to people that the crypto market falls in the world’s “top 25 tactical trade.” That is why it is considered a market with intense volatility.

Goldman Sachs research team on the derivative trading said the recent crackdown and the negativity regarding the crypto market hold the potential for investors to earn double on their investments.  The fact is that volatility creates massive loss and gain potential in the market.

This potential triggers investors to invest more. The higher the amount of trade involved, the higher chances of gains will be there. In case boom in trading volume, Coinbase can earn profits through fees.

The Bank also said that at a point: where Coinsbase price is low, people are rapidly paying to buy bitcoin as the price is expected to rise in the future. It is quite an interesting position in trade for those who are interested in buying.

Goldman said that Coinbase’s earnings-per-share estimated for the next year are 11% above the market consensus price.  Goldman Sachs previously served as the financial advisory company for CoinsBase.

On Monday, Coinbase traded at $248 per share that was 2.5% down as compared to its previous week’s value. The company expected to report its second-quarter result on coming Thursday. It is expected that its earing will double as compared to the first quarter.

The claims made by Goldman Sachs in its detailed report show that the crypto market was targeted on purpose as it has emerged as a threat to the traditional market. Regardless of the bullish trends about the crypto market is slowing down and Coinsbase prices going down investors have taken quite an aggressive stance regarding their investments in the crypto market.

It seems that all the top analysts and financial institutes have hinted that the future will see a more stable crypto market with prices of bitcoins and other digital coins going further up. Goldman Sachs encouraged investors that this is the right time to invest in, as volatility holds the potential for massive returns on the investment.

To be a successful trader all you have to do is to adopt the tactical approach in your investments. The positive times lie ahead of traders.

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