COIN - Why Coinbase Bitcoin and Ethereum All Popped Today
2023-03-13 14:40:26 ET
The banking crisis of the last week had a bigger negative impact on cryptocurrencies and related companies than a lot of investors anticipated it would. And right now, the market is cheering the federal government's moves to backstop customer deposits.
Shares of Coinbase Global (NASDAQ: COIN) traded as much as 14.34% higher Monday after starting the day down 5%. On the cryptocurrency side, Bitcoin (CRYPTO: BTC) was up as much as 16.9%, and Ethereum (CRYPTO: ETH) popped as much as 13.3%.
Coinbase was particularly impacted by the collapse of Silicon Valley Bank. The Center Consortium, which runs the USDC stablecoin, is 50% owned by Coinbase, and the entity had $3.3 billion in funds stuck at Silicon Valley Bank. Had those funds not been guaranteed, it's possible the token could have collapsed. That might not have cost Coinbase a lot of money, but it would have meant hundreds of millions of dollars in interest income from the token would stop flowing to the company .
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Why Coinbase, Bitcoin, and Ethereum All Popped Today