Intel Corporation, one of the largest computer chip manufacturers in the world disclosed on Friday in a filing with the U.S. Securities and Exchange Commissions (SEC) that it owns 3,014 shares of Coinbase’s common stock.

In case you are not aware, Coinbase Global Inc. is a U.S. based cryptocurrency exchange (NASDAQ: COIN). Coinbase just went public on the 14th of April this year and is one of the leading crypto exchanges out there. 

Why is this news even interesting? The monetary value of the investment is a mere $774,000 at the time of writing compared to the total amount of stakes Intel has on publicly traded stocks which amount to more than $100 Million. Not only that, Intel’s investment in Coinbase is insignificant compared to the market cap of Coinbase which is currently valued at $54.17b.

It matters. It matters because it is the first investment that Intel made in cryptocurrency-related operations and it could serve as a hint that large corporations are taking the initial steps toward adopting cryptocurrencies in their ecosystem.

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A look at Coinbase (NASDAQ: COIN)

Coinbase’s IPO was one of the most anticipated events in the industry as it is arguably one of the most popular cryptocurrency exchanges to date. However, the IPO was not looking great with its shares closing more than 20% lower than its high price. Since then, the shares continue on a bearish fall until they reached a low of $209 on May 19th, approximately one month after its IPO. One possible factor that contributed to the plunge could be the fall of Bitcoin prices during that period where it slid from its all-time high of $64,000 to the $30,000 range.

Although the recovery was slow in the beginning with the price being in a consolidation range, it has now recovered considerably with the price trading 24% higher than its all-time low.

Looking at the technical side of things

Chart 1: Coinbase 4-Hour Chart 
Chart updated 25 AUG 2021

From the chart above, we can see that Coinbase has made a great recovery by breaking through the previous range. It is currently lingering above a short-term trendline, and should the trendline hold we can anticipate the price to continue climbing and test the $300 resistance area.

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Ru Yi 

Financial Market Analyst

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