Coinbase stock up 21% following lawsuit dismissal
Shares of Coinbase have been rallying since Wednesday afternoon after a federal judge dismissed a lawsuit against the company.
The stock was up by roughly 21%, trading at around $78.7 as of 1 p.m. EST Thursday, according to data from TradingView.
The proposed class-action suit, filed in the U.S. District Court for the Southern District of New York in 2021, alleged that Coinbase facilitated the sale of unregistered securities.
A federal judge dismissed the case on Wednesday, according to a report from Bloomberg. Although the judge didn’t actually determine whether those digital assets were securities, he decided that the exchange didn’t actively solicit investments through its marketing materials.
Crypto markets generally soared following the Federal Reserve’s decision to raise interest rates by 25 basis points on Wednesday. Bitcoin is trading at around $23,896, up by 4.1%.
Although some investors believe bitcoin has bottomed, “market conditions continue to suggest Bitcoin/crypto traders remain uncertain of the future with BTC futures mostly flat,” Stephane Oullette, CEO of FRNT Financial, told The Block.