Coinbase (COIN) jumped more than 9% at the opening bell Monday, once again exposing the stock’s correlation to the broader crypto market.
COIN, which is trading at the Nasdaq exchange, ended last week at $53.44, down from $62.77 on Monday, as the crypto market flipped red on the back of the news of Silvergate Bank shutting down operations on March 8.
At the market open, Coinbase joined Bitcoin, posting hefty double-digit gains. COIN is now trading hands at $58.45, per Nasdaq.
COIN’s latest gains also took the shares of America’s largest crypto exchange up 4% over the past month.
Coinbase flips after bearish week
Last week was dominated by the bears, which included Circle's dollar-pegged stablecoin USDC plummeting 13% following the collapse of the Silicon Valley Bank (SVB) and the closure of the Signature Bank’s operations on Sunday.
Coinbase said on Sunday that as of Friday it held a corporate cash balance of around $240 million with Signature Bank, which hit the brakes over the weekend following the intervention by U.S. regulators.
The California-based company is also one of the founding partners of the CENTRE Consortium, the entity established together with Circle to issue and maintain the operations of the USDC stablecoin.
USDC depegged from its intended $1 price last week, as the stablecoin plummeted to an all-time low of $0.87 Friday.
In a statement on Saturday, Circle stated it would “cover any shortfall” caused as a result of the $3.3 billion in its funds held by the collapsed SBV.
As the worst fears are seemingly allayed though, following a joint statement from the Federal Reserve, U.S. Treasury, and FDIC stating that depositors at both banks would be made whole.
Before the market opened on Monday, President Biden also insisted that thanks to the "immediate action" from the U.S. Treasury "no losses will be borne by the taxpayer."