What Happened?
Shares of blockchain infrastructure company Coinbase (NASDAQ: COIN) jumped 7.8% in the morning session after CEO Brian Armstrong expressed strong optimism about an upcoming crypto regulation bill, calling it a 'freight train leaving the station.'
Armstrong's bullish comments came after he met with lawmakers about the Digital Asset Market Clarity Act, which sought to clarify the roles for financial agencies that regulate the crypto market. The company also pushed its Base network forward with key announcements, including plans to explore a native token and launch a bridge to the Solana blockchain. Adding fuel to the rally, the broader cryptocurrency market climbed after the U.S. Federal Reserve cut interest rates. Wall Street sentiment appeared to reflect this optimism, as analysts at Mizuho adjusted their price target on the stock upward to $300, while maintaining a neutral rating.
Is now the time to buy Coinbase? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Coinbase’s shares are extremely volatile and have had 61 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 about 21 hours ago when the stock dropped 2.2% on the news that the Federal Reserve cut its benchmark interest rate by a quarter-point, while signaling one rate cut in 2026 which was lower than expectations.
The widely anticipated move put the new target range for the federal funds rate at 4% to 4.25%. Policymakers cited a weakening labor market and moderating economic growth as the primary reasons for the cut, signaling a shift in their approach to support the economy. However, they also noted that inflation "has moved up and remains somewhat elevated," creating a conflict as the committee balances its dual mandate of stable prices and full employment. Investors continued to look for clues on the pace of future rate cuts as the Fed tries to balance a slowing job market with ongoing inflation. Most Fed Committee members have indicated they expect two more cuts for the year.
The Fed's "dot plot" also suggests a much slower pace of cuts than the market currently anticipates. With only one cut implied for 2026 compared to the three that traders priced in, this explained the market pullback after the initial spike that followed the rate cut announcement.
As a reminder, the driver of a stock's value is the sum of its future cash flows discounted back to today. With lower interest rates, investors can apply higher valuations to their stocks. We at StockStory remain cautious, as following the crowd can lead to adverse outcomes. During times like this, it's best to own high-quality, cash-flowing companies that can weather the ups and downs of the market.
Coinbase is up 34.6% since the beginning of the year, but at $346.33 per share, it is still trading 17.5% 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 $1,055.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
