Key Points
- Coinbase’s share price has risen over 9%, mirroring the wider cryptocurrency market’s growth.
- Bitcoin’s price momentarily reached $70,000, with its qualities compared to gold by BlackRock’s Head of Digital Assets.
Coinbase’s share price has seen a significant increase of over 9% in the past day, with shares now trading above $278 each. This positive development aligns with the overall growth of the cryptocurrency market, which has seen a 61% increase in its market capitalization since the start of the year.
Coinbase shares have experienced the same level of growth during this period. However, the company’s shares still have some distance to cover before reaching their previous all-time high of $342.98, achieved in November 2021.
Major Indices and the Cryptocurrency Market
Despite a downturn in U.S. stocks on Monday, Coinbase shares continued their upward trend. This was a slight shift from the previous week’s bullish movements, which saw major indices such as the S&P 500, the Dow Jones Industrial Average, and the Nasdaq composite reach record highs.
On Monday, the S&P 500 saw a decrease of 0.1% in midday trading, with the Dow Jones Industrial Average falling by 111 points or 0.3%. The Nasdaq composite also experienced a 0.1% decrease. This comes after the U.S. Federal Reserve signaled potential rate cuts for this year, provided inflation continues to cool.
Bitcoin’s Performance and Comparison to Gold
Bitcoin briefly reached the $70,000 mark on Monday, marking a 6% increase in the past 24 hours. This surge was noted at the Bitcoin Investor Day conference in New York City, where Robert Mitchnick, BlackRock’s Head of Digital Assets, likened Bitcoin’s properties to those of gold.
Mitchnick stated that Bitcoin’s long-term average correlation to stocks has been minimal, similar to gold. He also addressed the misconception of Bitcoin being a risk-on asset, clarifying that while Bitcoin is a risky asset due to its volatility and uncertainty, it does not necessarily correlate to equities and fixed income.
In the past 24 hours, the GM 30 Index, which represents a selection of the top 30 cryptocurrencies, has also seen a rise of 5.65% to 154.85.
