Investors have taken a bullish view of risk assets this morning, bidding up shares of this crypto company.
However, uncertainty tied to a swath of macroeconomic reports and Federal Reserve-speak this week appears to have calmed the market’s rigor.
Coinbase is also facing other regulatory and company-specific risks, which are once again being priced in.
Coinbase’s wild day Shares of Coinbase surged more than 8% in the morning, but then lost all of the gains and more. As of 2:30 p.m. ET, Coinbase was down -0.6%.
Coinbase’s move today appears to be negatively correlated to the move in the overall crypto market. In early-afternoon trading, the aggregate market capitalization of all cryptocurrencies was up, after being down at the start of the equities market.
That said, Coinbase’s move aligns closer to the price action of the Nasdaq, which surged this morning before slumping in today’s afternoon session.
So what is coming up this week that has investors uncertain?
As the week begins, investors are watching a series of key economic indicators and events that could impact the markets. On Tuesday, Jerome Powell, Chairman of the Federal Reserve, will speak, and on Wednesday, the Bureau of Labor Statistics will release the Employment Situation Report for January.
These events, as well as others throughout the week, could lead to increased volatility in the markets.
Coinbase, a digital asset exchange, has seen its value plunge by more than 30 percent in a single day this week. This volatility appears to be linked to the carnage that occurred last week, when the exchange saw its value drop by more than 30 percent.