Coinbase Global Inc COIN shares surged higher Tuesday as cryptocurrency-related stocks rebounded following recent weakness.
The crypto market traded lower last week following a technical breakdown of Bitcoin BTC/USD around the 20,000 level. The decline in crypto markets accelerated after Bitcoin fell through support. Cryptocurrencies also faced selling pressure amid a selloff in broader risk assets as traditional markets continued to trend lower, closing out the worst first half of the year since 1970.
The overall markets bounced back on Tuesday. Growth stocks led the rally amid a drop in yields. Lower rates increase the present value of future cash flows, which can positively impact the valuations of growth stocks. The 10-Year Treasury yield was hovering around 2.83% at press time.
Bitcoin also staged a reversal today, which helped lift crypto-related stocks. The world's oldest cryptocurrency was up 3.44% over a 24-hour period at press time.
COIN Price Action: Coinbase has traded between $368.90 and $40.83 over a 52-week period.
The stock closed up 13% on Tuesday at $55.41.
Photo: courtesy of Coinbase.
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