• Coinbase (COIN) stocks jumped 20% after the Fed’s rate hike and Jerome Powell’s remarks on fighting inflation.
• The crypto exchange also won a dismissal of a proposed class-action lawsuit by customers.
• Other crypto-related stocks like MicroStrategy (MSTR) and Silvergate Capital (SI) have also been rallying this year.

Coinbase Shares Soar

Coinbase (COIN) shares soared more than 20% on Thursday after the Federal Reserve’s latest interest rate hike decision and Fed Chair Jerome Powell’s remarks on progress in fighting the high rate of inflation.

Proposed Class-Action Lawsuit Dismissed

The US-based crypto exchange also got a boost after it won a dismissal on Wednesday of a proposed class-action lawsuit by customers who claimed Coinbase sold them unregistered securities.

Stock Price Correlated with Bitcoin

The company’s stock is up more than 100% this year as the crypto industry started recovering from the FTX exchange’s collapse. This is because Coinbase makes most of its revenue from trading volume, so its stock price is highly correlated with bitcoin (BTC), which has been rallying so far this year.

Barclays: Volumes Rose 56% in January

U.K bank Barclays said in a note on Thursday that Coinbase volumes rose 56% in January from the previous month, and that “volumes are now near levels seen in October before the collapse of FTX, but remain below the average for 2022.”

Crypto-Linked Stocks Rallying

Other crypto-linked stocks like MicroStrategy (MSTR) and Silvergate Capital (SI) have also been rallying this year, along with broader equity markets. Edward Moya, senior market analyst for foreign exchange market maker OANDA noted that “we might be getting six more weeks of winter, but it doesn’t seem like we will be seeing an ice age in crypto.”