Coinbase stock up - Is that good news for the cryptocurrency market?

Coinbase stock up - Is that good news for the cryptocurrency market?

According to the latest news from Yahoo Finance, Coinbase's shares have increased by almost 50% since the SEC filed the case for allegedly providing unregistered securities, despite the company being subject to a securities violation lawsuit in the US.

In recent weeks, Coinbase shares (NASDAQ: COIN) surged 60% from around $50.56 on June 12 to $81.21 on July 10, with the stock up around 141% year-to-date. COIN last reached an all-time high of $342.98 per share on Nov. 12, 2021.

Is this news good for the cryptocurrency market? Let’s find out with FinFan in this article.

What is Coinbase?

Parallel with the development of Binance and often compared with this No. 1 exchange on the market, Coinbase is the second big cryptocurrency exchange where you can buy and sell almost all IDO (Initial DEX Offering) coins.

The reasons why Coinbase stock up.

During the development of Coinbase in the NASDAQ stock market. The stock code COIN of Coinbase has experienced a lot of fluctuations around the crypto market in particular and finance in general.

When the cryptocurrency market when the crypto market went through a brutal downtrend, the price of COIN lost over 83% of its market value and returned to $50.56 from a $342.98 peak.

So, why was this stock market code increased to $81.21 on July 10? According to the opinions of the cryptocurrency market’s experts, this increase in COIN is largely based on Bitcoin's sudden price surge in recent weeks has at times been almost double the previous crypto market crash.

This phenomenon was assessed by FinFan in an article Bitcoin is the most effective investment channel in the first half of 2023 - Is that good or bad?

The Bitcoin price increase could be due to the influence of some whales in the market and the brokers’ team pushing the price up for a short time aim to FOMO the market to buy when the Bitcoin price is at its peak.

Is Coinbase stock up a piece of good news for investors in the cryptocurrency market?

Due to the above reason, the increase of COIN in the NASDAQ stock market can be good and bad news for the cryptocurrency market.

Why is it good?

Through this increase, investors will focus more on cryptocurrency and start to have the first move to research potential projects and put money back into this market (not only focusing on Bitcoin).

That leads to the second sign of a bull market starting when the Altcoins’ values will increase and so do the market’s capital. Since that time, the market has just started showing signs of improvement and returned to an uptrend.

Why is it bad?

Now, the increase in the value of Coinbase shares is largely due to the strong movement of Bitcoin. When the Bitcoin price bubble burst with the withdrawal of whales from the market and the FOMO in the market began to subside, investors in the crypto market capital at this time, especially Bitcoin, will fall into a losing position.

Second, despite the increase in the value of Coinbase's shares, the company is still being accused of securities fraud by the SEC.

This problem will make this company specializing in the field of crypto exchanges in trouble if it is true and the reputation of this exchange will be significantly reduced, thereby greatly affecting investors who have traded. on this exchange.

Like what happened with FTX last year, only one scandal in the financial statements of its subsidiary Alameda completely destroyed the then 2nd largest exchange in the world.