Coinbase Stock Soars 24% After Fed Rate Hike, Judge Dismisses Lawsuit
- Coinbase Stock Surges 24%: Coinbase (COIN) shares surged by more than 24% following the Federal Reserve’s interest rate hike and the dismissal of a class-action lawsuit against the crypto exchange.
- Bullish on Crypto: The majority of Coinbase income comes from trading volume, and its stock value is closely connected to Bitcoin (BTC). BTC has been rising so far this year and has climbed since the Fed announced an interest rate hike.
- Altcoin King Ethereum (ETH): Ethereum (ETH), the altcoin king, rose from $1,500 to $1,700 price level according to CoinGecko data.
Coinbase Stock Surges 24% Following Fed Interest Rate Hike
U.S based cryptocurrency exchange Coinbase (COIN) shares soared by more than 24%, despite the Federal Reserve’s most recent hike in interest rates and statements from Fed Chair Jerome Powell about the Fed’s efforts in battling the high rate of inflation. Further, on Wednesday, a U.S. judge dismissed the lawsuit filed by its clients that alleged the cryptocurrency exchange was selling unregistered securities and had not registered as a broker-dealer. This could have been another factor for Coinbase’s price boost.
Bullish on Crypto
At the start of 2023, global cryptocurrency market began to recover from collapse of crypto exchange FTX. Also, Coinbase stock surged by more than 123% this year and 46% within a week with stock prices reaching up to $81 according to Tradingview. The majority of Coinbase income comes from trading volumes which are closely connected to Bitcoin (BTC). On one hand BTC has been rising steadily this year while on other it has climbed even further after Federal Reserve announced interest rate hike by 25 basis points taking it from around $23000 to approximately $24000 price range as per CoinGecko data.
Altcoin King Ethereum (ETH)
Ethereum (ETH), often referred as altcoin king, also rose significantly this past month climbing from around $1500 mark up till approximately $1700 level according to CoinGecko data with 36% increase over past month and 7% within last two weeks alone providing further support for optimistic sentiments about cryptocurrencies in general despite higher volatility levels associated with them due to uncertainty surrounding regulations imposed on them thus making them riskier investments compared with traditional ones like stocks or bonds.