After the failure of two major banks and the related economic fallout, everything to do with the crypto world has appreciated, including the Coinbase stock
Coinbase’s stock is benefiting from the banking crisis that is sinking the specific industry with heavy fallout on all of Wall Street.
Coinbase stock (Nasdaq: COIN) and beyond
During yesterday’s day, almost the entire crypto sector and related stocks on Wall Street rose sharply as a result of recent events in the financial sphere and US inflation data.
The US government under pressure from the Federal Reserve was forced for the first time in its history to adopt 100% investor capital protection.
The measure is aimed at avoiding contagions among troubled banks and to contain the damage to the economy.
In the meantime, confidence on banks drops dramatically especially in the stock market and conversely everything related to crypto goes up.
The mini bull run makes the crypto world happy as a whole and in particular Coinbase, one of the few entities also listed on the stock exchange that sees its stock value rise significantly.
COIN stock climbs to a high of +11.8% in a single session and then returns a respectable +8%.
Today the stock reverses 4.5 percent in value as expected after the initial euphoria but is still well above its pre-banking crisis price and is worth €56.45.
The consequences of the banking crisis
Marathon Digital Holdings and Riot Platforms, two apex companies in the mining of are up 12% in the market.
In addition to these companies already mentioned, Hut also appreciates 16% by touching $2.41 while Microstrategy gains 5%.
The bullish movement takes the Dow Jones to +314 points, the Standard & Poor’s 500 on the other hand appreciates by 1.60% while the Nasdaq Composite by 2.10%.
Bitcoin sees a 1 million increase in new active addresses in just two days and the entire crypto sector touches $1.13 trillion in volume with a 5.67% growth in 24 hours.
On Sunday, the Fed and the US government rushed to the rescue by declaring that they would guarantee 100% on the capital invested in the crashed banks.
After an initial collapse the banking sector recovered somewhat contributing to another positive day for the S&P 500.
In the meantime, Bitcoin pulls ahead of other cryptocurrencies and publicly traded companies.
Soon the Fed will launch another rate hike that was thought to be 50 basis points, although in light of recent defaults it could change.