Shares of the crypto exchange Coinbase, traded under the ticker COIN, are experiencing a surge in the stock market, reaching their highest level seen in 2023 at $128.27. This current stock price surpasses the previous peak of $110.15 from July, aligning with price levels from May 2022 when spot Bitcoin last traded above $30,000.
The Influence of Coinbase CEO Brian Armstrong
Coinbase’s recent performance is attracting attention, largely due to comments made by CEO Brian Armstrong earlier this week. Armstrong stated that the settlement imposed on Binance by the US Department of Justice represents a turning point for the crypto industry. He said, “The enforcement action against Binance, that’s allowing us to kind of turn the page on that and hopefully close that chapter of history.” This optimistic outlook combined with the positive market sentiment has contributed to the surge in Coinbase’s stock price.
A Broader Bullish Trend for the Crypto Market
The rise in Coinbase’s stock price is occurring amidst a broader bullish trend for the crypto market. Over the past month, COIN has outperformed major assets like Bitcoin and Ethereum, gaining more than 70%. This outstanding performance has prompted Cathie Wood’s Ark Invest to rebalance its holdings for its exchange-traded funds (ETFs) focused on Bitcoin and crypto. Ark Invest recently sold $5.3 million worth of Coinbase shares while acquiring about $1.2 million in Robinhood shares. As a result, Coinbase now constitutes 13% of the ARK Fintech Innovation ETF portfolio, while Robinhood represents 4%.
It is worth noting that Coinbase’s stock performance often mirrors the overall volatility in the crypto market. When crypto prices rise, COIN tends to benefit, and when prices decline, its shares follow suit. Therefore, investors are keeping a close eye on Coinbase’s performance now that it appears to be outperforming major crypto assets.
