Coinbase Stock Pops 9% as Cryptocurrencies Bitcoin and Ether Rally
Monitors display Coinbase signage during the company’s initial public offering (IPO) on Wednesday, April 14, 2021 at the Nasdaq MarketSite in New York.
Michael Nagle | Bloomberg | Getty Images
Coinbase shares closed up 9% on Monday as cryptocurrencies like bitcoin and ether gained momentum.
Bitcoin, the world’s largest cryptocurrency, was trading at $21,926, up nearly 4% on Monday afternoon, according to data from Coinbase. Ethereum also jumped nearly 9%, trading at $1,478.
According to data from CoinMarketCap, Ethereum comprises about 30% of Coinbase’s trading volume, while Bitcoin accounts for about 21%.
Tech stocks are largely in the green on Monday, as investors bet that the Federal Reserve will be less aggressive against inflation than feared. Maybe this is giving Coinbase shares some extra steam. Still, the company’s stock is down 76% for the year and is down about 83% from its 52-week high on November 9, 2021.
Coinbase’s surge comes after an internal email from the company last month said the company was laying off 18% of its workforce.
CEO Brian Armstrong also warned last quarter that the company grew “too quickly” during a bull run and called for the need to manage Coinbase’s burn rate and increase efficiency. He also said that the crypto winter could result in a drop in trading activity.
“It looks like we are entering a recession after a 10+ year economic boom. The recession could lead to another crypto winter, and could last an extended period,” Armstrong said in the email. “While it is hard to predict the economy or the markets, we always plan for the worst so that we can operate business through any environment.”