Why Coinbase and Altcoins Jumped Midday Tuesday
Cryptocurrencies have had another volatile day on Tuesday as investors grapple with both bullish and bearish sentiments in the market. Oil is up 3.7% at 1:20 p.m. ET and stock markets are mixed after the Federal Reserve indicated that it will fight inflation over preventing a recession but also isn't going to raise rates rapidly at this stage. That could be giving markets pause on the recession risk, but pushing cryptocurrencies higher as traders hear that interest rates aren't about to jump.
Shares of Coinbase Global (NASDAQ: COIN) went on a wild ride, climbing 6.9% in the first hour of trading only to give all of the day's gains back by 1 p.m. ET. Shares are currently up 1.1% on the day. Bitcoin Cash (CRYPTO: BCH) is up 10.2% in the last 24 hours, Eos (CRYPTO: EOS) is up 4.2% but was up 15% from bottom to top today, and Chiliz (CRYPTO: CHZ) is up 19.9% today.
On the plus side, the Federal Reserve issued guidance that outlined how crypto banks could get access to master accounts with the central bank. The crypto industry largely lives in an unregulated space at the moment and this would pull some companies into the regulatory system. Having master accounts would give crypto banks access to the Federal Reserve's payment structure and transaction settlement, among other benefits.
Source Fool.com
