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.
A bitcoin halving typically takes place every four years and is programmed into the cryptocurrency’s network to cut the reward in half for mining new blocks.
The price of bitcoin 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,” Coinbase analyst David Han said.