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Here's Why Coinbase Global, Canaan, and Ebang International Were Up Big Today

By Keith Noonan – Aug 9, 2021 at 2:36PM

Key Points

  • A bullish rally for the broader crypto space is pushing valuations for some industry-related stocks higher.

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The crypto market has enjoyed strong bullish conditions over the last month.

What happened

Rising prices for leading cryptocurrencies, including Bitcoin and Ethereum's Ether, are prompting big gains for crypto-related stocks in today's trading. Coinbase Global (COIN -3.47%), Canaan (CAN 1.25%), and Ebang International Holdings (EBON -5.23%) are among the players in the space posting significant gains in the session. The stocks were up roughly 7.7%, 11.7%, and 12.1%, respectively, as of 1:30 p.m. EDT.

Ether's token price has risen 30% over the last month, while Bitcoin's price per token has climbed roughly 29% across the stretch. Strong pricing momentum for leading cryptocurrencies typically drives valuations for trading and mining specialists higher, so it's not surprising to see cryptocurrency technology companies participating in the recent rebound for the broader crypto market. 

A Bitcoin logo.

Image source: Getty Images.

So what

Cryptocurrencies have seen volatile trading this year, but leading tokens have made big gains across the stretch. Bitcoin's price per token is up roughly 49% in 2021, while the price for Ethereum's Ether token has surged 312%.These gains have helped spur rallies for companies in the cryptocurrency and fintech services spaces, but investors should know there's still a lot of uncertainty on the horizon 

Now what

Coinbase is scheduled to report second-quarter earnings after the market closes on Aug. 10. With Bitcoin and Ethereum enjoying positive pricing momentum, the fintech company's stock price is benefiting from the surge in the lead-up to its earnings release. Meanwhile, the bullish turn for cryptocurrency pricing is also driving up share prices for China-based Bitcoin hardware mining specialists Canaan and Ebang International, and these companies will likely benefit if the market-leading crypto token's price continues to climb. 

Investors should proceed with the understanding that the broader cryptocurrency space remains prone to high levels of volatility. In addition to concerns related to new regulatory developments that could impact the crypto market, tokens are sometimes prone to big pricing swings on very little material news. Investing in trading platforms such as Coinbase or mining technology companies such as Canaan or Ebang can provide some diversification in the crypto space, but stocks in these categories still tend to trade in line with major cryptocurrency market moves.  

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Coinbase Global, Inc. Stock Quote
Coinbase Global, Inc.
COIN
$41.62 (-3.47%) $-1.50
Canaan Inc. Stock Quote
Canaan Inc.
CAN
$2.43 (1.25%) $0.03
Ebang International Holdings Inc. Stock Quote
Ebang International Holdings Inc.
EBON
$4.71 (-5.23%) $0.26
Bitcoin Stock Quote
Bitcoin
BTC
$16,759.56 (2.38%) $389.07
Ethereum Stock Quote
Ethereum
ETH
$1,262.83 (4.56%) $55.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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