UpdatesJul 02, 2023

Coinbase's share price has jumped nearly 40% since it was sued by the SEC

The attack of the American financial market supervisor helped a well-known company from the digital currency sector.

While everything seemed to indicate that initially Coinbase suffered heavily due to intense attacks from the US Securities and Exchange Commission (SEC), COIN shares reached a two-month high. All this happened after the fact, when just 3 weeks earlier this cryptocurrency exchange received a lawsuit from the US regulator.

COIN shares reach 40% gain after SEC attack

At this point, it is worth noting that in the long term, the US regulator was in no way able to sink one of the largest companies in the digital currency sector. Despite the senseless war that the SEC has been waging for a long time with many companies in the industry, including Coinbase, the shares of this popular trading platform have recently experienced a significant price rebound.

Taking a few steps back in the history of the American financial regulator, it should be recalled that at the beginning of June this year, the US regulator accused the stock exchange led by Brian Armstrong of selling unregistered securities in the form of digital currencies. These allegations primarily concerned the sale of such assets as: Solana (SOL), Polygon (MATIC), Cardano (ADA), as well as several other popular altcoins.

Just three weeks after the lawsuit against Coinbase was filed, the company's share price on the NASDAQ rose nearly 40%. At this point, you cannot escape the fact that on June 6 this year, the share price of this cryptocurrency exchange oscillated around $ 50 per share, while now it is already $ 72.43.

It is worth noting that over the last 5 days the COIN price has experienced a significant appreciation, as the value of a single coin has soared by as much as 27.65%. The latest data is also impressive, which shows that the price of this altcoin has increased by 2.37% in the daily range. It's worth noting that the last time Coinbase's share price was this high was around mid-April this year.

Improvement of sentiment on the cryptocurrency market

Recently, the oldest of the digital currencies confidently regained the lost price balance of $ 30,000 for one coin. As usual, most altcoins followed in Bitcoin's footsteps, recording an increase in token quotations. Analysts of the cryptocurrency sector argue that the strong recovery in the digital asset market was directly related mainly to the constantly growing optimism towards BTC.

Apparently, investors in the cryptocurrency sector have started to assume that the oldest digital currency can achieve higher institutional adoption in the near future after the BTC spot ETF gets the green light from the SEC. Although this US regulator has strongly rejected similar requests before, for some reason this time, BlackRock was at the forefront of companies applying to launch such an investment fund.

Although positive sentiment among digital currency investors also translated into an increase in Coinbase share prices, it should also be noted that the shares of this company are still far from their ATH, which took place in November 2021. At that time, the COIN share reached sky-high levels of over $342.