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Coinbase, MicroStrategy Shares Rally As PCE Inflation Cools 2.4% – Crypto News

Published

2 years ago

February 29, 2024

Dripp

Amidst the slowdown in the United States consumer price increase, American publicly traded exchange Coinbase and other crypto-linked stocks like Michael Saylor’s MicroStrategy are on track to end February on a very good note.

Decline in US Inflation Rate

According to a report from the U.S. government, prices moved 0.3% from December to January, indicating that there has been a 0.1% increase from the previous month. Compared to the previous year, prices have only gone up by just 2.4%, which is quite encouraging, judging by the Federal Reserve’s efforts to stem inflation through the hike in interest rates. In addition, the price increase was down from a 2.6% annual pace in December.

Today’s data for Personal Consumption Expenditure (PCE), a metric that the Federal Reserve uses to ascertain price pressures, aligns with economists’ expectation of 2.4%, as detailed in a survey.

For the last three years, this is the smallest increase that the market has experienced but at the same time, many citizens have expressed frustration over the price increase. There are speculations that the year-over-year (YoY) cooldown in inflation is somewhat linked to President Joe Biden’s plans to run for office again.

However, with the current stance of citizens over inflation, the focus of the electorate might shift in the coming months.

Coinbase and MicroStrategy in Profit

Despite the situation of the market as well as the heavy traffic which led to a temporary glitch on its platform, Coinbase shares reached a multi-month high on Wednesday.

Though there was only a 1% gain on COIN, according to TradingView, it was sufficient to close above the $200 benchmark for the first time since January 2022. Coinbase’s shares is up by 58% from the past month and by Wednesday’s market close, it was trading at $200.80.

This is a welcomed improvement but the share is still underperforming in comparison to its all-time high of $342.98 set during November 2021’s crypto bull-market peak. In addition, its trading volume is equally soaring and has successfully moved to $8.6 billion over the past 24 hours. The adoption of Coinbase Custody service by 90% of spot Bitcoin ETF issuers has contributed to the increase in the firm’s income and investor sentiment at the same time.

MicroStrategy is also one of the firms registering profit this season. Apart from the slowdown in CPI, the recent Bitcoin price rally has placed the business intelligence and software company on the list of the highest-performing firms in the U.S.