Coinbase (COIN) stock rose almost 10% Tuesday after the crypto exchange was listed as a surveillance partner for several spot bitcoin ETFs, and rising options trading volumes and open interest indicate bullish sentiment may stay with the stock in the coming months. According to FxPro senior market analyst Alex Kuptsikevich, This is an expected development, but there were still risks, so a sigh of relief quickly turned into a short squeeze. Data shows open interest, or the number of unsettled futures contracts, grew 4% on Tuesday as the stock ended the day at $89.15. This brings the year-to-date gains to 74%, major cryptocurrencies such as bitcoin (BTC) and ether (ETH).
COIN-listed options saw open interest climb 14.6% to 953,393 contracts on Tuesday, data shows, a level much higher than the 52-week average of 812,568 contracts. In addition, the put-call ratio decreased by 6.1% to 1.2 in the last five days, suggesting a bullish outlook for COIN among traders.
The agreement between Coinbase and traditional finance players, combined with the rising open interest and put-call ratio, indicates that the stock may continue to rise in the medium term. Kuptsikevich noted that We can’t rule out the impact of reports from the Ark Innovation fund, which announced the sale of Coinbase shares… The range exit offers further momentum with potential targets for a quick rally to $113 and longer-term upside targets near $160, as Coinbase has missed out on a significant portion of the cryptocurrency market’s upside.