Shares of the cryptocurrency exchange Coinbase, trading under the ticker COIN, are experiencing a surge in the stock market and are currently valued at $128.27, marking the highest level observed in 2023.
This current stock price surpasses the previous peak of $110.15 recorded in July and aligns with price levels seen in May 2022, coinciding with the last period when spot Bitcoin traded above $30,000.
Although still below the all-time high of $342.98 reached in November 2021, Coinbase’s recent performance is noteworthy.
The surge in stock value follows comments made by Coinbase CEO Brian Armstrong earlier in the week, where he suggested that the settlement imposed on Binance by the US Department of Justice signifies a turning point for the cryptocurrency industry. Armstrong stated, “The enforcement action against Binance, that’s allowing us to kind of turn the page on that and hopefully close that chapter of history.”
New bullish phase for crypto?
The surge in Coinbase’s stock price is occurring amidst a broader bullish trend in the cryptocurrency market.
Over the past month, COIN has demonstrated stronger performance compared to major assets such as Bitcoin and Ethereum, registering a gain of over 70%.
COIN’s outperformance in relation to spot cryptocurrency prices has prompted Cathie Wood’s Ark Invest to rebalance its holdings in exchange-traded funds (ETFs) that focus on Bitcoin and crypto. Ark Invest recently divested approximately $5.3 million worth of Coinbase shares while acquiring around $1.2 million in Robinhood shares.
After the sale, Coinbase and Robinhood now make up 13% and 4%, respectively, of the ARK Fintech Innovation ETF portfolio.
The performance of Coinbase’s stock has frequently reflected the overall volatility in the cryptocurrency market. As cryptocurrency prices rise, COIN tends to experience positive momentum, and conversely, its shares tend to follow suit when prices decline. Investors are closely monitoring Coinbase’s performance, especially given its recent outperformance compared to major cryptocurrencies.
