This morning, investors appear to have taken a bullish view of risk assets, bidding up shares of Coinbase, a 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 had an impressive 8% move higher today, but it all went downhill from there. The stock lost over 60% of its value by the end of the day. What caused this massive decline?
Coinbase’s recent move is interesting, as it appears to be negatively correlated to the move seen in the overall crypto market. In early-afternoon trading, the aggregate market capitalization of all cryptocurrencies regained positive territory, after being down at the start of trading for the equities market (crypto is a 24/7 game).
However, 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 are investors waiting for this week?
A series of jobs reports and other economic indicators are due this week, as well as Fed-speak from Jerome Powell on Tuesday and Wednesday. Today’s indecisive price action in the overall market indicates that investors remain uncertain with respect to what this week will hold for risk assets.
What is the market waiting for this week? Investors are waiting for a series of jobs reports and other economic indicators. There will also be Fed-speak from Jerome Powell on Tuesday and Wednesday. Today’s indecisive price action in the overall market indicates that investors remain uncertain with respect to what this week will hold for risk assets.