Proactive Investors - Coinbase Global Inc (NASDAQ:COIN) shares are set to open more than 2.5% higher after the crypto exchange platform benefited from the Bitcoin “halving” event last week.
The Bitcoin Halving is an event, typically taking place every four years, which is programmed into the cryptocurrency’s network and cuts the reward for mining new blocks in half.
Bitcoin itself has marched around 10% higher following the event and jumped 1.5% on Monday, with the leading cryptocurrency now at US$65,877.
It represents a significant upturn against last week’s one-and-a-half-month lows of US$59,600.
However, it isn’t just the surge in Bitcoin prices impacting Coinbase.
Transaction fees on the Bitcoin blockchain spiked to all-time highs immediately following the Halving. While they have come down significantly, fees on the network are still some of the highest yet seen in 2024.
Looking forward, Coinbase believes the direction of the digital currency market will led by macroeconomic factors.
“These factors are largely exogenous to crypto and include increased geopolitical tensions, higher for longer rates, reflation, and rising national debts,” analyst David Han said.