How Indian investors traded Coinbase stock after the US SEC’s action on cryptocurrency exchange

Coinbase, a cryptocurrency exchange listed on the Nasdaq stock exchange in the United States, has seen a surge in trading activity among Indian investors in recent days. Data from Vested Finance, a US investing platform for Indian Investors shows a recent surge in buying activity in the stock of Coinbase. The news behind the sudden interest in the stock is related to the US SEC action on Coinbase, a cryptocurrency exchange.

The Securities and Exchange Commission (SEC) filed a civil lawsuit against Coinbase Global Inc., alleging that it operated an illegal exchange. Given Coinbase’s prominence in the US and its status as a publicly traded firm, the SEC’s action stands noteworthy.

After the US SEC’s action, in New York trade, the stock decreased 12% to settle at $51.61. The fall reduced the company’s market capitalisation by approximately $1.5 billion at one point on Tuesday. On Wednesday, the stock of Coinbase Global Inc. (COIN) closed at $53.26, higher than 3.2% than the previous day’s close.
The biggest US cryptocurrency exchange, Coinbase Global Inc., debuted on the public market in April 2021. When the company was first listed on Nasdaq, it opened for trade for $381 under the ticker symbol “Coin.” The bitcoin exchange was worth as close to $100 billion at that point while currently it is close to $12 billion.

Date from Vested Finance platform

In the last 10 days, the trading data for Coinbase stock indicates the following trends:

Buy Trades on Coinbase stock

Out of all the buy trades that occurred in the last 10 days, a significant portion, precisely 64%, took place within the last two days. This suggests a recent surge in buying activity.

Additionally, the total amount traded for buy transactions during the last two days accounts for 83% of the total amount traded in the entire 10-day period. This implies a considerable amount of money being invested in Coinbase stock during the recent buying spree.

Sell Trades on Coinbase stock

Among all the sell trades executed within the last 10 days, approximately 30% of them occurred within the last two days.

Interestingly, the amount traded during the last two days accounted for only 13% of the total amount traded in the entire 10-day period. This suggests that while the number of sell trades increased, the corresponding amount traded remained relatively lower.