summary
- Despite facing technical glitches on its platform, Coinbase experienced a 4% surge in after-hours trading.
- This uptick in trading activity occurred concurrently with a significant increase in the value of Bitcoin.
- The positive market response extended beyond Bitcoin to encompass a wider range of assets.
During after-hours trading, Coinbase shares saw an almost 4% rise, undeterred by the persisting technical challenges affecting the platform. Despite issues such as latency and display errors linked to increased website traffic, investors remained unfazed as Coinbase stock achieved its highest value in over two years on March 4th.
After-Hours Surge for Coinbase Shares
During regular trading hours, the stock surged by 11% to $229 and continued its ascent in after-hours trading, reaching a peak of $238, as reported by data from Google Finance. Despite the platform’s performance issues, Coinbase reassured customers that their funds remained secure. The exchange acknowledged the technical difficulties, which resulted in some users experiencing delayed loading times and incorrect balance displays on Coinbase.com.
Approximately halfway through the U.S. trading day, a fix was implemented to address these issues and improve overall latency across the website. Coinbase had encountered similar challenges on February 28th, prompting concerns from investors. Notably, Andrew Left’s investment research firm, Citron, recommended short-selling Coinbase stock following the February outage, considering it an attractive opportunity in the crypto market.
The surge of Bitcoin and its impact on the broader market
In contrast to the challenges faced by Coinbase, Bitcoin exhibited significant gains, surging by over 7.8% within a 24-hour period and nearing its 2021 peak of nearly $69,000. Notably, the United States witnessed increased activity in spot Bitcoin exchange-traded funds (ETFs), with trading volume reaching approximately $5.5 billion. Fidelity’s ETF saw a record net inflow of $404.6 million, surpassing outflows from the Grayscale Bitcoin Trust ETF.
Meanwhile, MicroStrategy, renowned for its substantial Bitcoin acquisitions, saw a notable uptick in its stock price. Ending the day with a 23.5% increase at over $1,330, MicroStrategy’s stock reached levels unseen since the dot-com bubble era in 2000. Additionally, speculative cryptocurrencies known as “memecoins” experienced a resurgence in interest.
Dogecoin and Shiba Inu, both popular memecoins, recorded triple-digit percentage gains over the past week, indicating renewed investor enthusiasm for these volatile digital assets. Despite ongoing technical difficulties and platform challenges, Coinbase’s resilience in adversity, coupled with positive developments in the wider cryptocurrency market, bolstered investor confidence. As Bitcoin and other cryptocurrencies continue to gain prominence, investors remain attentive, closely monitoring market trends and technological advancements in the industry.
