Coinbase Stock up 12% Leading S&P 500 Gainers as Crypto Trading Platform Keeps Rallying

Coinbase Global, Inc. up 12% and was the best-performing stock on the S&P 500 Tuesday as the cryptocurrency trading platform added to its recent rally.

The major reason for the fuel in the COIN price is the investment of Cathie Wood’s Ark Invest. The company bought 1,519 more Coinbase shares on Monday. That might seem like a small number. But at the time of writing, Ark holds over $159 million worth of Coinbase stock, representing 7.82% of its total assets. This shows Ark’s continued confidence in Coinbase, and when big institutional investors show faith, others usually follow.

Another reason, U.S. President Donald Trump announced a “Complete and Total Ceasefire” between Israel and Iran, bringing relief to global markets after what he called “the 12 day war.” The news contributed to a rapid recovery in cryptocurrency prices by reducing market anxiety.

After falling over the weekend, Bitcoin rose back above $106,000, Ethereum experienced a robust 15% increase, while XRP increased by more than 6%, surpassing the $2.15 threshold. The overall positive sentiment gave a much-needed boost to the entire crypto market. Because Coinbase is a major exchange tied to crypto prices, these gains gave its stock a healthy push upward.

On top of this, Coinbase also secured a MiCA license from Luxembourg’s financial authority. This makes it the first U.S.-based exchange approved under the EU’s new crypto rules.  Coinbase has legal permission to offer services across all EU countries, helping expand its business in Europe.

It seems that Coinbase stock price surged as a result of multiple positive events occurring simultaneously.  The stock increased as a result of investors’ excitement over all this positive news.