Coinbase Stock Hits Record High—Here’s the Fuel Behind the Rally

Wall Street’s crypto darling just smashed through its ceiling—again. Coinbase shares are soaring past previous all-time highs, leaving traditional finance skeptics scrambling for explanations. Here’s what’s pumping the rally.

The Bitcoin ETF effect

BlackRock’s spot Bitcoin ETF approval lit the fuse. Institutional money flooded in, and Coinbase—as custodian for eight of the ten largest funds—got a backstage pass to the inflow party. Trading volume? Through the roof. Custody fees? Printing.

Regulatory tailwinds

The SEC’s sudden softness on enforcement actions didn’t hurt. After years of playing whack-a-mole with crypto firms, even Gary Gensler’s team seems tired of losing. Coinbase’s legal wins against the agency turned uncertainty into a bullish signal.

The retail FOMO cycle

Main Street investors are piling back in—because nothing screams ‘healthy market’ like 20% daily swings. Meme coin mania is back, and Coinbase’s simplified trading interface (read: one-click leverage) is the gateway drug.

Wall Street analysts are upgrading price targets while quietly moving their own portfolios into Treasury bonds. Some things never change.

Coinbase stock price just concluded one of its most exciting weeks characterized by impressive bullish activity. The stock’s performance was a reflection of the latest excitement in the crypto market.

The Coinbase stock surged as high as $437 which was equivalent to a 6.9% weekly upside, but it had retreated to a $419 press time price tag.

This recent peak also underscored a 69% YTD upside, and more importantly, it meant that the stock was in price discovery territory.

Coinbase stock price/ source: Google Finance

The YTD gain was especially noteworthy because it underscored the robust institutional appeal evident by strong ETF inflows.

The Coinbase stock rally also demonstrated direct correlation with Bitcoin’s impressive run especially in the last 3 months during which it pushed into new ATHs.

COIN stock price performance was a reflection of the industry’s performance. The surging demand for the stock confirmed that investors especially in the institutional segment were eager to secure exposure to the recent growth in the crypto market.

Coinbase CEO Brian Armstrong Chimes in on GENIUS Act Impact

President TRUMP recently passed the GENIUS act and Coinbase CEO Brian Armstrong was one of the few crypto executives present at the White House during the event.

He described the recently passed act as a validation for the crypto community and expressed his advocacy for the bill.

Moreover, Armstrong described the GENIUS act as a financial revolution for America, underscoring its importance in the financial industry.

This was a nod to the idea that the crypto industry may become the next upgrade for the traditional financial industry which previously remained unchanged for decades.

The last time that the financial industry received a significant upgrade was its integration with the age of the internet.

This recently passed regulation now paves the way for the industry to adopt WEB3 at a macro scale. The Coinbase CEO stated that the clarity brought forth by the recent legislation was expected to accelerate adoption by companies in the Fortune 500.

Armstrong noted that he expected the new law to pave the way for aggressive stablecoin adoption. The fact that the new stablecoin law requires issuers to back their coins with U.S treasuries also meant that demand for treasuries WOULD be on the rise.

How Will Coinbase Benefit from the Recently Passed Laws?

Coinbase was in strategic position to secure arising opportunities. For example, the stablecoin laws were expected to boost transactions from which the major exchange will benefit.

A deeper dive into Coinbase revealed that it has been making moves aimed at securing more growth opportunities in its industry.

Coinbase’s recent Deribit acquisition paved the way for more opportunities in the derivatives segment.

Moreover, Coinbase is one of the biggest players in the crypto custody space. The regulatory clarity could boost the adoption of its custodial services, possibly creating a healthy revenue boost in the long run.

But what does this latest development mean for the Coinbase stock and its future outlook? Perhaps the first major point was that the validation offered by recent regulatory clarity paved the way for more appeal in the stock market.

A few weeks ago in May, Coinbase stock was added into the S&P500. This MOVE effectively meant that it was more likely to receive investment from pension funds and other major investment companies.

The latest surge in Coinbase stock marketcap elevated it in the ranking of the top S&P500 companies.

All the above factors highlighted why the stock has been rallying and why it may continue to do so further down the road.

Analysts remained confident that the stock could easily push above $500 before the end of the year.