Coinbase shares rise as Bitcoin gains momentum
Coinbase shares rose 9% on Monday morning on the IG Platform as Bitcoin also gained momentum in the cryptocurrency world.
November marked a second straight month of gains for Bitcoin, which benefited from rising prospects of the US Federal Reserve cutting interest rates next year. Also, traders are anticipating the imminent approval of a US Bitcoin exchange traded fund.
(AI Video Trancript)
Coinbase
Coinbase, a popular trading platform, has seen almost a 9% rise in the value of its shares on the IG platform. This increase can be directly linked to the growing value of Bitcoin, a well-known cryptocurrency. Bitcoin has been on the rise throughout November, and this upward trend is the second month in a row that it has seen gains.
The US Federal Reserve
One of the main reasons for Bitcoin's rise in value is the increasing likelihood of rate cuts by the US Federal Reserve in the coming year. These rate cuts are meant to stimulate economic growth and prevent a potential recession. As a result, many investors are turning to Bitcoin as an investment option. They see it as an appealing alternative to traditional assets like stocks and bonds.
Bitcoin-based exchange-traded funds
Additionally, traders are eagerly waiting for the approval of Bitcoin-based exchange-traded funds (ETFs) in the US stock market. ETFs would provide a regulated and convenient way for investors to gain exposure to Bitcoin. This approval would also attract a wider range of market participants, further legitimizing Bitcoin as a mainstream investment.
Coinbase shares
Overall, the surge in Coinbase shares is a reflection of the positive market sentiment towards Bitcoin and the excitement surrounding its future prospects. These factors have not only attracted new investors to the cryptocurrency market but have also reinforced the long-term viability of Bitcoin as an investment asset. In conclusion, Coinbase has seen a significant increase in its shares due to the rise in Bitcoin's value, driven by the prospects of rate cuts and the expected approval of Bitcoin ETFs. These events have generated positive market sentiment and brought new investors into the cryptocurrency world.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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