• Coinbase (COIN) shares jumped more than 20% after the latest Fed rate hike decision and dismissal of a class-action lawsuit.
• Crypto-related stocks are rallying, with MicroStrategy (MSTR) up 10% and Silvergate Capital (SI) soaring 30%.
• Barclays said Coinbase volumes rose 56% in January from the previous month, near levels seen before FTX’s collapse.
Coinbase Shares Surge
Coinbase (COIN) shares soared more than 20% on Thursday after the Federal Reserve’s latest interest rate hike decision, as well as the dismissal of a proposed class-action lawsuit by customers who claimed that it sold them unregistered securities. The U.S.-based crypto exchange has seen its stock price rise more than 100% since the start of 2021 as the crypto industry recovers from the FTX exchange’s collapse.
Crypto-Related Stocks Rally
The surge in Coinbase stock was part of a larger rally among crypto-related stocks, with other companies such as MicroStrategy (MSTR), which sometimes acts as a bitcoin proxy due to its large holdings, rising about 10%, and crypto bank Silvergate Capital (SI) skyrocketing 30%.
Coinbase Volume Rises
Barclays noted in a report that Coinbase volumes rose 56% in January from the previous month, now nearing levels seen before FTX’s collapse but still below average for 2022. This suggests that investors may be regaining confidence in cryptocurrencies and driving up demand for exchanges like Coinbase.
Fed Chair Comments on Inflation
The Fed’s rate hike decision was accompanied by comments from Powell noting progress in fighting inflationary pressures. This news bodes well for all types of investments including cryptos and stocks related to them such as those mentioned above.
Crypto Industry Recovering
Overall, this news indicates that the crypto industry is recovering from recent losses and gaining back investor confidence due to improved fundamentals and macroeconomic conditions like lower inflation rates. It also shows that companies like Coinbase are benefiting financially due to increased trading volume on their platforms.