The cryptocurrency broker Coinbase Global experienced a significant climb in its stock price on Wednesday as Bitcoin surpassed the $60,000 mark.
Stock Performance
Coinbase’s stock price rose by 4.3% on Wednesday to reach $207.68. If this level is sustained, it would represent the stock’s highest closing price since February 16, 2022. In the month of February alone, shares have already gained an impressive 62%.
Correlation with Bitcoin
Coinbase’s stock value typically moves in correlation with Bitcoin, the leading cryptocurrency worldwide. The platform generates revenue from transaction fees associated with buying and selling digital tokens.
Bitcoin’s Performance
On Wednesday, Bitcoin reached an intraday high of $61,337, marking its highest point since November 16, 2021. The cryptocurrency’s all-time high remains at $67,352.59, achieved on November 9, 2021.
Factors Driving Bitcoin’s Rise
Bitcoin’s recent surge can be attributed to various factors including expectations of lower interest rates, the anticipation of Bitcoin exchange-traded fund approvals, and adjustments to miners’ compensation known as halving.
Market Outlook
Coinbase’s Chief Financial Officer Alesia Haas noted that the excitement surrounding Bitcoin ETF approvals and positive macroeconomic expectations have contributed to increased crypto prices and volatility by the end of the last quarter.
Related Stocks
Other cryptocurrency-related stocks such as Marathon Digital Holdings and MicroStrategy also saw increases in their share prices, with Marathon Digital set to report fourth-quarter earnings after market close.
Analyst Ratings
Analyst Mark Palmer initiated coverage of MicroStrategy stock with a Buy rating and a $990 price target based on the company’s strategic approach of accumulating Bitcoin.
In conclusion, Coinbase’s stock surge in tandem with Bitcoin’s rise reflects the ongoing growth and interest in the cryptocurrency market.
