The massive stock market rally last week, led by the technology sector, brightened crypto prices. Bitcoin (BTC-USD) traded flat in the week, down by 0.54%. Ethereum (ETH-USD) rose by 0.25%.
XRP performed better as it added 2%. Conversely, Cardano (ADA-USD) lost some ground. The overall stability in crypto gave Coinbase (COIN), a publicly traded crypto platform, support. COIN stock bottomed at $49.22 on May 4, 2023, then rebounded in the $57 - $60 range. The platform will need a resolution in the U.S. for raising the debt ceiling in the near term. It also needs the Federal Reserve to issue a less harsh tone about the pace of inflation.
These two events will increase the attractiveness of cryptocurrencies and Coinbase stock.
Bears disagree.
The short float on COIN stock is ~ 21%. They did not forget the SEC asked the court to reject Coinbase’s aggressive petition on crypto rulemaking. Still, any court ruling that helps Coinbase would weaken the SEC and lift the crypto sector.
Bottom Line
Investors who seek legitimate alternatives to fiat currency need platforms like Coinbase. Competitors like FTX filed for bankruptcy while Binance’s balance sheet is opaque. As the sector brightens, stock investors should watch COIN stock recover.
