Why Coinbase Stock Jumped 34% in July
Shares of Coinbase Global (NASDAQ: COIN) jumped 33.9% in July, according to data provided by S&P Global Market Intelligence. This easily surpassed the 9.1% return of the S&P 500. Indeed, Coinbase stock more strongly correlated to the price of Bitcoin during July, with Bitcoin up 18% during the month.
For Coinbase shareholders, the ride must feel chaotic. The problem is that, because of changes in the economy, the market isn't sure what Coinbase is worth based on past results. And because of volatility in the cryptocurrency space, investors aren't confident in Coinbase's future. These realities mean that Coinbase often moves more due to exogenous factors than news with its own business. And this was largely the case again in July.
Keep in mind that Coinbase stock was down 81% in the first half of 2022 and hit its all-time low on June 30. But Bitcoin was down more than 50% during this time -- one of its strongest pullbacks ever. And the S&P 500 was down 21%, it's worst six-month performance to start a year since 1970.
Source Fool.com
