Coinbase (COIN) shares surged this week as Bitcoin climbed above $80,000, with Goldman Sachs simultaneously raising its price target from $173 to $196. The long-run correlation between COIN and Bitcoin stands at 0.61 according to PortfoliosLab, a moderate reading suggesting the link is real but less automatic than some assume. The key difference lies in volatility: Coinbase’s exceeds double Bitcoin’s, at roughly 20% against 8.5% over the long run, amplifying moves in both directions. In August, the stock fell about 36% year-to-date while Bitcoin declined roughly 27% over the same period, illustrating this over-reactivity.
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