The Best and Worst Time for Coinbase

Bitcoin has been on a tear in recent days following the collapse of banks including crypto-friendly Silvergate and Signature. Crypto bulls take the bitcoin rally as a sign investors are seeking a safe haven in crypto, while skeptics are pointing out the gains likely have more to do with macro trends like inflation and interest rates. 

Regardless, the rally is good for Coinbase, since higher prices should pump up trading volume. But the exchange, and the sector more broadly, has been facing mounting scrutiny from U.S. regulators. The implosion of two banks closely tied to the crypto industry won’t make it any easier to win favor.