Coinbase Jumps On Schwab News But Gains Fade; Is Coinbase Stock A Buy Now?

Why It Matters

Schwab’s entry signals growing institutional demand for crypto services, potentially expanding market liquidity. Coinbase’s performance highlights how regulatory uncertainty and technical weakness can suppress even the largest U.S. crypto exchange’s valuation.

Key Takeaways

• Schwab to launch direct crypto trading H1 2026
• Bitcoin rebounds near $70k, boosting Coinbase shares
• Coinbase down 24% YTD, facing regulatory headwinds
• Technicals show death cross, resistance at 50‑day moving average
• Mutual funds stagnant, neutral accumulation rating

Pulse Analysis

Charles Schwab’s decision to roll out direct cryptocurrency trading marks a pivotal shift toward mainstream financial institutions embracing digital assets. By integrating crypto order flow into its brokerage platform, Schwab could attract a sizable retail and institutional client base that previously relied on specialized exchanges. This move not only validates Bitcoin’s resilience—evident in its rebound toward $70,000—but also sets a competitive benchmark for other custodians seeking to capture a share of the rapidly expanding crypto market.

Coinbase, the largest U.S. cryptocurrency exchange, continues to grapple with a challenging regulatory landscape and mixed earnings results. The company’s fourth‑quarter report showed an 80% drop in adjusted earnings per share to $0.66 and a 22% revenue decline to $1.8 billion, underscoring the volatility of crypto‑related revenue streams. Bipartisan revisions to the Digital Asset Market Clarity Act, including restrictions on stablecoin yield products, add further uncertainty. While the stock rallied after the earnings release, its 24% YTD decline reflects investor wariness amid pending legislation and a broader market pullback.

From a technical perspective, Coinbase’s chart has entered a bearish configuration, with the 50‑day moving average acting as a key resistance level and the 200‑day average forming a death‑cross. The Relative Strength Rating of 12 and a Composite Rating of 23 suggest underperformance relative to peers. Institutional ownership remains static, with mutual funds holding roughly 36% of shares but showing no recent buying activity. Investors weighing a position must balance the potential upside from increased institutional crypto adoption against the downside risks posed by regulatory headwinds and weakening technical momentum.