Crypto and fintech stocks surge after being in red for months.

Financial-technology and crypto companies like Coinbase and Wise witnessed an uptick in their stock prices Tuesday after remaining in red for months.

Financial technology and crypto companies like Coinbase and Wise enjoyed a rebound this week, a much-needed relief for a group of stocks that Wall Street has shunned over the past few months. The S&P 500 snapped a five-day losing streak after a trading session in which Wall Street digested fresh comments on inflation and rate hikes from US Federal Reserve chair Jerome Powell.  

 

Crypto firm Coinbase gained 5.4%.

Crypto companies like Galaxy Digital and Coinbase surged, gaining 8.5% and 5.4%, respectively. Fintech firm Robinhood — which has fallen more than 70% since it clocked in all-time highs in August — ended today’s session up 5%. Wise, a fintech that trades on the London Stock Exchange, traded up 3.66%. Bakkt, which has fallen a whopping 85% since October, gained 7.6%. While private fintech and crypto companies have enjoyed soaring valuations in private markets, public market investors have shunned them for the better part of the last year. Recently, more and more crypto companies have shown interest in going public. 

 

JMP’s Devin Ryan outlined his bullish thesis for the sector. 

Stocks of such companies were in demand earlier in the pandemic as new users flocked to platforms like Robinhood and Block’s Cash App to buy stocks and collect government stimulus. In a note, JMP’s Devin Ryan outlined his bullish thesis for the sector despite recent “choppiness.” Here’s Ryan: “Market conditions were undoubtedly constructive in 1H21 with huge customer engagement and record trading volumes for any investment-related business. That said, the underpinnings have never been healthier as we believe 2022 will see further acceleration in the pace of incremental business launches, creative partnership announcements, and accretive M&A.”  

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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