Crypto exchange Coinbase saw a 10% rally in its stock, as it traded at $53 per share on Tuesday. The broad crypto market also saw an uptrend this week, with Bitcoin hitting a new high since September last year.
The price of Bitcoin soared over 20% in the past week, resulting in a wholesome market movement. The extended rally in the crypto market helped Coinbase boost its shares. Coinbase shares had dropped to $31.95 on January 6 before the recent surge to over $53 this week.
Crypto Market Recedes to Pre- FTX Levels
The crypto market has surpassed the FTX woes, soaring this week. Bitcoin price reached its price pre-FTX as it traded above $20,000, gaining a whopping 20%. This uptrend resulted in the general market clearing off the losses incurred before the FTX capitulation.
The crypto market cap regained $1 trillion over the weekend, a feat that has recently been difficult to attain. This resulted in Coinbase cutting down some of its shares losses from the poor market trend, though it is still 75% down from last year and 84% below its all-time high.
Rally Spells Provide Relief for Coinbase
The recent market rally would relieve Coinbase, as the exchange has had a challenging 2022. Coinbase’s stock dropped 87% to $35 from a valuation of $268 in December 2021, and it has dropped even more this year before the recent market uptrend.
Last week, the company announced it would lay off 20% of its staff, the third time the exchange has cut its workforce since the start of last year. Before the previous cut, the company had announced it would be closing down most of its operations in Japan as part of its plan to stay afloat in the hash crypto bear market.
Coinbase CEO Brian Armstrong revealed in a blog post that the market trended downward along with its broader macroeconomics. He noted that the crypto market suffered from “fallout from unscrupulous actors in the industry,” stating that there could be further exposure in the coming months.
Armstrong stated that the staff layout was a move to maintain operational efficiency and balance in the bear market, allowing the company to capitalize on any opportunity that may present itself.
