Coinbase stock outlook as Bitget chief analyst forecasts a pullback in Bitcoin

Coinbase Global Inc (NASDAQ: COIN) has done exceptionally well over the past three months but it may be as far as its shares go at least in the near term.

Ryan Lee shares his view on Bitcoin

The crypto stock has outperformed this year partially on the back of a sharp rally in Bitcoin.

But there’s reason to believe that the world’s largest cryptocurrency by market cap will pullback in May, says Ryan Lee – the chief analyst at Bitget.

Options market, he added in a research note this morning, is also indicating a relatively low probability of a breakthrough in Bitcoin this month.

Coinbase topped estimates in Q1

Even with the launch of exchange-traded funds and the halving event last month, Bitget’s Lee expects BTC to trade in the range of $56,000 and $68,000 in May.

A lack of breakthrough in Bitcoin may impede the ongoing rally in Coinbase stock that tends to benefit from higher crypto prices as they typically attract more users to the platform, resulting in increased trading volumes and revenue.

Just a day earlier, for example, $COIN reported its financial results for the first quarter that came in ahead of well ahead of Street estimates as consumer transaction revenue more than doubled on a year-over-year basis.

Competition from Crypto.com that has recently been regaining market share could act as another potential headwind for Coinbase shares.