Coinbase Shares Surge as Bitcoin Hits $70,000

1. Coinbase shares surge over 9% in 24 hours, trading above $278 per share.
2. Bitcoin briefly touches $70,000, experiencing a 6% increase in the past day.
3. BlackRock’s Head of Digital Assets highlights Bitcoin’s unique characteristics, challenging its classification as a purely risk-on asset.

In the wake of Bitcoin’s climb to the $70,000 mark, Coinbase shares have surged by over 9% in the past 24 hours. It is reaching above $279 per share according to TradingView data.

The rally in Coinbase shares mirrors the broader cryptocurrency market, which has seen a remarkable 61% increase in market capitalization since the year began. Notably, Coinbase’s shares have matched this surge, rising by the same percentage over the same period.

While Coinbase’s recent gains are significant, the company still has ground to cover to reach its previous all-time high. In November 2021, Coinbase shares peaked at $342.98.

Contrast with Traditional Markets

Despite U.S. stocks experiencing a slight downturn on Monday, Coinbase shares have continued their ascent. This contrasts with last week’s bullish trend that saw record highs for major indices like the S&P 500, the Dow Jones Industrial Average, and the Nasdaq composite.

Bitcoin’s price briefly touched $70,000, experiencing a 6% increase in the past 24 hours, trading at $69,819 at 12:09 p.m. ET according to The Block’s Price Page. This surge coincided with remarks from BlackRock’s Head of Digital Assets, Robert Mitchnick. He likened Bitcoin’s characteristics to that of gold at the Bitcoin Investor Day conference in New York City.

Bitcoin’s Correlation with Traditional Assets

Mitchnick highlighted Bitcoin’s historical correlation to stocks, noting that while it has had periods of similarity to gold. The long-term average correlation with stocks has been close to zero.

This challenges the notion that Bitcoin is inherently a risk-on asset, suggesting that its volatility and uncertainty differentiate it from traditional equities and fixed income instruments.

The GM 30 Index, representing a basket of the top 30 cryptocurrencies, has also experienced a notable uptick, rising by 5.65% to 154.85 in the past 24 hours.

As Bitcoin continues to capture headlines with its milestones, Coinbase and the broader cryptocurrency market remain dynamic arenas for investors, reflecting evolving sentiments and trends within the digital asset space.