Crypto Exchange Coinbase Makes Stock Exchange Debut, Boosting Share Price by 16% on NYSE US Market Announcement
Morning Briefing: US Crypto News in a Nutshell – your essential rundown of the top crypto stories of the day
Ready to kickstart your crypto day? let's dive into the buzz surrounding Coinbase, the leading US-based exchange by trading volume. Despite Q1 earnings missing expectations, Coinbase made waves by joining the S&P 500, and today, more exciting developments are on the horizon.
Crypto Headline of the Hour: Coinbase Went live on the New York Stock Exchange After Gaining S&P 500 Membership
BeInCrypto revealed that Coinbase Exchange had made history by securing a place in the S&P 500. Specifically, Coinbase Global Inc. has now taken Discover Financial Services' spot in the S&P 500, effective from May 19th's market open.
This announcement sent Coinbase stock, COIN, soaring nearly 10% on May 12th, and with more bullish fundamentals in play, COIN price skyrocketed over 16% today, May 13th, trading at $241.23 as we speak.
The New York Stock Exchange (NYSE) is one of the world's biggest stock exchanges, where various securities, including stocks and bonds, are traded. Joining the NYSE signals Coinbase Global Inc.'s stability, and with the strict listing requirements the NYSE imposes, this move is likely to attract even more institutional investors.
As a result, index funds and ETFs tracking the S&P 500 will acquire COIN shares, potentially boosting the stock price. The Bitwise data suggests institutional investors and ETFs with assets totaling $7.9 trillion could contribute to an estimated $15 billion in Coinbase purchases, reflecting the growing acceptance of crypto-related firms by traditional finance.
Highlight of the Day
Wall Street Firms Downgrade Fed Interest Rate Cut Predictions
Meanwhile, the Bureau of Labor Statistics released the latest Consumer Price Index (CPI) data, which reveals inflation eased to 2.3% annually in April. Consequently, major Wall Street firms have pushed back their Federal Reserve interest rate cut forecasts:
- JPMorgan: Initially anticipating the first reduction in September, it now expects the first cut to occur in December. The chance of a US recession has dropped below 50%.
- Citigroup: Previously planning to postpone the expected cut from June to July, Citigroup's economists have further delayed the call to July from stocks.
- Goldman Sachs: Inspired by optimism bubbling from a temporary US-China tariffs truce, it has deferred its penciled-in July cut to December and trimmed its US recession odds to 35% from 45%.
- Barclays: Now sees its first move in December rather than its earlier July forecast.
Taken together, these revised projections indicate a growing sense of confidence that the economy can withstand current policy settings for longer than initially thought.
Quick Bytes
Here's a wrap-up of other US crypto news to watch today:
- US CPI data showed inflation cooled to 2.3%, triggering a surge in Bitcoin price as markets reacted positively.
- Bitcoin surpassed $100,000, tickling debate on whether retail investors are truly returning to the market.
- Rumors about Truth Social meme coin launch circulated, which Truth Social and Trump-linked entities vehemently denied, labeling them misleading.
- Animoca Brands shifted its focus to a US IPO, citing favorable digital asset regulations under the Trump administration.
- Metaplanet sought to raise $15 million in 0% interest bonds, with the goal of securing 10,000 BTC by 2025.
- The US-China tariff relief deal contributed to a market boost; however, Bitcoin ETFs saw only $5 million in net inflows, the lowest since April 14.
- XRP's price rose by 3%, making it the top gainer in the market, amid surges in open interest and growing bullish sentiment.
- Pi Network teased an upcoming ecosystem announcement at Consensus 2025, scheduled for May 14, highlighting its Web3 aspirations.
- Arizona's push for digital asset integration in public finance stalled, as Governor Katie Hobbs vetoed two cryptocurrency bills, SB 1373 and SB 1024.
- Institutional interest and real-world asset tokenization could strengthen ETH's potential to surpass Bitcoin in value and utility.
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- Coinbase's stock price surged by 16% after securing a place in the S&P 500, indicating institutional interest and anticipation of more acquisitions by index funds and ETFs tracking the S&P 500.
- Joining the New York Stock Exchange signals Coinbase Global Inc.'s stability, enhancing its appeal to institutional investors.
- The growing acceptance of crypto-related firms by traditional finance, as evidenced by Coinbase's entry into the S&P 500, may lead to a shift in the crypto market, particularly in investing, trading, and finance.
- Major Wall Street firms have pushed back their Federal Reserve interest rate cut forecasts for various reasons, with some expecting the first reduction as late as December, indicating increased confidence in the economy's resilience.
- Bitcoin's price surged in response to cooled inflation as indicated by the latest Consumer Price Index data.
- Despite rumors about a meme coin launch linked to Truth Social and Trump-friendly entities, these were vehemently denied, raising questions about the credibility of such speculation.
- Animoca Brands' decision to pursue a US IPO could be influenced by favorable digital asset regulations under the Trump administration, underscoring the role of regulation in incentivizing businesses in the crypto space.
- The potential for institutional interest and real-world asset tokenization could strengthen Ethereum's position to surpass Bitcoin in value and utility, highlighting the significance of business and technology developments in the crypto ecosystem.
