By Shares of Coinbase Global Inc. (COIN) surged 10.3% higher in afternoon trading on Tuesday, positioning them to close at an 11-month high. This impressive growth comes despite bitcoin’s (BTCUSD) modest increase of just 0.3%.
Coinbase, a leading cryptocurrency exchange, has been experiencing a significant uptrend in its stock price. In July alone, the stock has soared by 25.2%, following a 15.0% increase in June and a rally of 15.6% in May. Comparatively, bitcoin has only inched up by 0.1% this month after skyrocketing by 11.8% in June and experiencing a decline of 7.2% in May.
Since Coinbase’s initial public offering (IPO) in April 2021, there has been a strong correlation of 0.92% between the stock and bitcoin. A correlation of 1.00 would indicate a perfect alignment in movements. This is based on an analysis of FactSet data.
Recent interest from investors in Coinbase and bitcoin can be attributed to BlackRock Inc. and other asset managers who have filed applications for exchange-traded products that invest in bitcoin. These companies have also named Coinbase as their partner for surveillance sharing agreements.
While Coinbase’s stock makes impressive gains, the S&P 500 index edged up by 0.4% on Tuesday but has seen a month-to-date decline of 0.5%.
Comments