Coinbase: Don't Be Unduly Concerned About The Crypto Winter - Look Past The Current Cycle

The media didn't like Coinbase's Q2 earnings print, but the market didn't batter COIN back to its June lows. Hence, we are increasingly confident it has formed its medium-term bottom.We urge investors to look past its current malaise and accumulate with the market as we posited. This isn't the first time that Coinbase is undergoing a crypto winter.Notwithstanding, the momentum spike in COIN has likely reflected its near-term upside. Therefore, we expect a consolidation moving forward.As such, we revise our rating from Speculative Buy to Hold.ThesisCoinbase Global, Inc.'s (COIN) Q2 earnings release didn't surprise us, even though the media and some investors were disappointed. The market already knows that Coinbase is undergoing the crypto winter, and the results will be underwhelming for a while.Moreover, we are increasingly confident that COIN had already formed its medium-term bottom in June (which we discussed in our previous article), as the near-term crypto market pessimism reached its heights. But, the market is forward-looking, and we believe long-term crypto investors understand that the current cycle will not sink Coinbase, similar to what it has experienced over time. Therefore, investors who capitalized on the significant pessimism in June to add more positions were rewarded as COIN had a massive momentum spike pre-earnings (after the BlackRock announcement).Bitcoin (BTC-USD) and Ethereum (ETH-USD) have also climbed...