What Happened?
Shares of blockchain infrastructure company Coinbase (NASDAQ: COIN) jumped 3.1% in the morning session after a broad rally in the cryptocurrency market, fueled by cooling inflation data that reinforced expectations for a Federal Reserve interest rate cut in September. The rally pushed the total cryptocurrency market capitalization above $4.1 trillion.
The positive momentum stems from recent U.S. inflation data, which has led markets to price in a 96% chance of a Federal Reserve interest rate cut, according to CME's FedWatch. This environment is attracting institutional investors, with their trading activity now accounting for 75% of the total Bitcoin volume on Coinbase.
Adding to the bullish sentiment, analysts at research firm Bernstein stated that an “alt rally,” where digital assets other than Bitcoin gain strongly, has commenced and that Coinbase is positioned to be the “biggest beneficiary” due to its extensive list of over 250 tradable tokens.
After the initial pop the shares cooled down to $328.20, up 1.8% from previous close.
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What Is The Market Telling Us
Coinbase’s shares are extremely volatile and have had 62 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 7% on the news that the price of Bitcoin surged, hovering near its all-time high. The world's largest cryptocurrency traded above $121,000, approaching its record high of just over $123,000. The rally in crypto-related assets has been linked to strong demand from institutional investors and general optimism about broader adoption. A recent executive order that could open the door for workers to invest in crypto through 401(k) retirement accounts also appeared to boost sentiment. Further supporting the stock, Coinbase recently rolled out a significant update integrating decentralized exchange (DEX) trading into its main app. This feature expands access for its U.S. customers to millions of tokens on its Base network, making onchain trading faster and easier.
Coinbase is up 27.6% since the beginning of the year, but at $328.20 per share, it is still trading 21.8% below its 52-week high of $419.78 from July 2025. Investors who bought $1,000 worth of Coinbase’s shares at the IPO in April 2021 would now be looking at an investment worth $999.76.
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