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Coinbase soars 10% as crypto markets rally and bitcoin notches highest price since September

Coinbase man shadowCoinbase announced last week that it plans to rescind job offers and freeze hiring indefinitely.

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  • Coinbase jumped more than 10% to $53 a share on Tuesday.
  • The extended rally in crypto markets are helping boost shares of the US crypto exchange. 
  • Coinbase cut 20% of its workforce last week, citing “increasingly challenging economic conditions.”

Coinbase surged more than 10% on Tuesday, trading at $53 per share as the wider crypto market enjoys a week-long rally.

The move in Coinbase stock comes as cryptocurrency prices continue their uptick. Bitcoin jumped 20% in the past week, according to Messari, while the industry’s market cap rebounded to more than $1 trillion over the weekend. Bitcoin notched its highest price since September. 

Industry execs say they believe market jitters are likely over after the downfall of Sam Bankman-Fried’s crypto empire FTX.

“I think we’ll see less volatility in the Bitcoin price over the next 6 months just because traders are likely scarred by the recent events of the FTX crash,” Kadan Stadelmann, chief technology officer of blockchain solutions provider Komodo, told Insider. 

The multi-day rally in digital assets is helping boost Coinbase stock, though shares of the company are still down 75% in the past year. 

Coinbase last week announced its third round of layoffs, axing 20% of its workforce.

In a company blog post, chief exec Brian Armstong said that crypto markets “trended downwards along with the broader macroeconomy” this past year.

“We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion… In the face of increasingly challenging economic conditions, we made the difficult decision to further reduce the size of our teams to ensure we have the appropriate operational efficiency to weather downturns in the crypto market, and capture opportunities that may emerge,” Armstrong wrote. 

Read the original article on Business Insider