Shares of Coinbase popped 17% on Monday as cryptocurrencies like bitcoin and ether rallied.
Bitcoin, the world’s largest cryptocurrency, was trading at $22,269, up around 6%, according to Coinbase data. Ethereum also jumped roughly 10%, trading at $1,478.
Ethereum comprises roughly 30% of Coinbase’s trading volume, while Bitcoin amounts to about 21%, according to CoinMarketCap data.
Tech stocks are largely in the green on Monday, as investors appear to bet that the Federal Reserve will be less aggressive against inflation than feared. That may be giving Coinbase shares some extra steam. Still, the company’s stock is down 75% for the year and is off about 83% from its 52-week high on Nov. 9, 2021.
Coinbase’s surge comes came after an internal email from the company last month saying the company is laying off 18% of its employees.
CEO Brian Armstrong also warned last quarter that the company grew “too quickly” during a bull market and called out the need to manage Coinbase’s burn rate and increase efficiency. He also said that crypto winters may result in a decline in trading activity.
“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period,” Armstrong said in the email. “While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment.”
