Why Crypto Jumped (Temporarily) and Coinbase Crashed Today
This has been anything but a straightforward day for investors in cryptocurrency and related stocks. After the Federal Reserve announced a 75 basis point increase in interest rates yesterday the market pushed crypto higher, but the bounce didn't last and values were falling on Thursday morning. Percentage moves are fairly low at noon ET because the Fed announcement happened after noon, but look at the volatility we've seen.
Bitcoin (CRYPTO: BTC) hit a low of $20,222 and a high of $22,974 in the last 24 hours but is down just 1.7% over that time. Ethereum (CRYPTO: ETH) saw a low of $1,042 and a high of $1,257 and is down just 0.6%. Solana (CRYPTO: SOL) traded as low as $28.07 and as high as $36.00 but is now up 5.5%. Coinbase (NASDAQ: COIN) has traded as much as 8.8% lower today and is currently down 5.8%.
Cryptocurrency values are following trading on the Nasdaq Composite, which reacted positively to the Federal Reserve news yesterday and then sold off sharply in Thursday trading. Since crypto is generally more volatile than the market as a whole, it's not surprising to see big swings today.
Source Fool.com
