Coinbase’s stock is soaring towards an 11-month high, experiencing a remarkable surge of over 25% this month. Despite bitcoin’s modest 0.3% increase, Coinbase Global Inc. has seen its shares spike 10.3% higher in afternoon trading on Tuesday, setting it on track to close at its highest point in almost a year.
The cryptocurrency exchange’s stock has been on a steady upward trajectory, climbing 25.2% in July alone. Prior to this, it surged 15.0% in June and rallied 15.6% in May, showcasing its impressive growth in recent months. In comparison, bitcoin has seen more modest gains, inching up just 0.1% in July after a substantial 11.8% surge in June and a 7.2% decline in May.
Since going public in April 2021, Coinbase’s stock has displayed a strong correlation of 0.92% with bitcoin. This indicates a close relationship between the two, with a correlation of 1.00 suggesting perfect alignment. MarketWatch’s analysis of FactSet data reveals that recent investor interest in Coinbase and bitcoin can be attributed to various asset managers, including BlackRock Inc., who have expressed interest in exchange-traded products that involve bitcoin. BlackRock and others have chosen Coinbase as their partner for surveillance sharing agreements, further fueling investor enthusiasm.
While Coinbase’s stock continues to surge, the S&P 500 edged up 0.4% on Tuesday, although it has slipped 0.5% month to date. This disparity highlights the exceptional performance of Coinbase’s stock, which stands out even amidst broader market fluctuations.
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