Coinbase Stock Defies Logic—Rises on Data Breach as S&P 500 Hype Masks Risks

Wall Street shrugs off security flaws—again. Coinbase shares climb 8% post-breach disclosure, proving crypto investors will cheer anything if the S&P 500 is mooning.

Security? Overrated. When the broader market’s high on Fed liquidity, who cares about pesky things like ’hacked user data’? Traders pile in as institutional FOMO outweighs common sense.

Bonus jab: Another day, another case of ’risk-on’ euphoria blinding traders to fundamentals. But hey—when the music stops, at least the bagholders will have a scapegoat.

Coinbase stock sees bullish rally

Coinbase (COIN) has officially joined the S&P 500, marking a significant achievement for the crypto exchange.

While the listing reflects growing institutional acceptance, COIN saw a slight dip of 0.93% at the time of writing, according to Google Finance.

Nonetheless, the stock has surged over 32% in the past five days, underscoring strong market sentiment ahead of the announcement.

This momentum comes despite recent concerns surrounding a data breach linked to third-party contractors, which affected less than 1% of users.

Technically, the bullish trend remains intact, supported by RSI indicators, though failure to hold above the $265 resistance could trigger a reversal below the $239.98 support.

Source: Trading View

Galaxy Digital joins the fray

Galaxy Digital (GLXY), the crypto investment firm founded by Mike Novogratz, made its Nasdaq debut on the 16th of May, opening at $23.50 per share.

The listing marks the culmination of a lengthy four-year battle with the SEC, an ordeal Novogratz called both “grueling” and costly.

From a technical standpoint, the 15-minute chart indicates that bearish pressure still outweighs bullish momentum, despite the recent upward move.

Source: Trading View

But if buying strength picks up, GLXY could challenge resistance at $24.30, with a breakout potentially targeting the $30 range.

However, maintaining the key support level at $23.91 is critical — a breakdown below this zone could drag the stock toward $22.11 or even sub-$20 levels.

Strategy is no exception

Wrapping up the momentum across crypto stocks, Strategy (formerly MicroStrategy) continues to reinforce its bullish stance on Bitcoin.

Despite facing a class-action lawsuit, the firm acquired 7,390 BTC last week, worth nearly $765 million, bringing its total holdings further into record territory.

At press time, MSTR’s stock was hovering just below a crucial resistance at $428.46, while its RSI dipped to 61.60 from last week’s 67.51, hinting at waning momentum.

Source: Trading View

A breakout above resistance could send the stock toward $437.61, but if sellers regain control, downside targets at $390 and potentially $356 could come into play.

Ergo, the stock’s trajectory, like the broader crypto sector, now hinges on whether bulls can sustain their grip.