On June 27, according to Coindesk, Markus Thielen, founder of 10x Research, stated on Friday that the stock price of Nasdaq-listed cryptocurrency trading platform Coinbase (stock code COIN) is rapidly approaching an overvaluation threshold. He suggested adopting a paired trading strategy: short COIN while going long on Bitcoin.
Markus Thielen noted that Coinbase's fundamentals, especially trading volume growth, have failed to keep up with its stock price rise, and the stock price is quickly approaching an overvaluation level, which is a typical "tactical reversal" setup.