Coinbase (COIN) shares closed 2.11% higher on July 21, bucking a broader trend that has hedge funds pulling back from US technology stocks at a record pace, according to a Goldman Sachs warning. The cryptocurrency exchange’s stock ended the session at $160, and was up another 3.28% in pre-market trading at the time of writing.
Goldman’s warning on tech selling
Goldman Sachs cautioned that hedge funds are selling US tech equities at a record pace. The bank’s prime brokerage data showed that net selling of tech stocks by hedge funds hit an all-time high in recent weeks. The selling has been concentrated in the so-called “Big Tech” names, but the broader sector has also seen outflows.
The warning from Goldman comes as the tech-heavy Nasdaq Composite has struggled to maintain its rally from earlier this year. Rising interest rates and concerns about valuations have prompted many institutional investors to rotate out of growth stocks and into value or defensive sectors.
Coinbase’s countermove
Coinbase, often seen as a proxy for the cryptocurrency market, has not followed the broader tech sell-off in recent days. The stock’s gain on July 21 suggests that some investors see the company as a distinct play on digital assets rather than a pure tech stock. The pre-market gain of 3.28% indicates continued buying interest.
The company’s performance comes amid a mixed regulatory environment for crypto in the US. While the SEC has pursued enforcement actions against several crypto firms, Coinbase has maintained its listing on the Nasdaq and continues to expand its services.
What’s next for COIN
Investors will be watching for Coinbase’s next earnings report, due later this year, to see if the company can sustain its revenue growth amid volatile crypto prices. The Goldman Sachs data on hedge fund selling suggests that institutional sentiment toward tech broadly remains cautious, but Coinbase’s recent price action indicates that not all tech names are being treated equally.
The pre-market uptick on July 22 will be tested when regular trading begins. Whether Coinbase can hold its gains in the face of continued hedge fund selling of US tech equities remains an open question.
