Why did Coinbase stock surge today? Bitcoin holds onto gains

Shares of cryptocurrency exchange Coinbase Global (NASDAQ:COIN) +12.3% jumped on Tuesday, as bitcoin (BTC-USD) and a slew of major digital tokens rebound from the broader selloff over the long weekend. Bitcoin (BTC-USD), in particular, is riding nearly 2% to $20.7K as of shortly before 5:00 p.m. ET. On the other hand, ethereum (ETH-USD), the largest altcoin by market cap, is ticking down 0.1% to $1.11K after hitting as high as $1.18K earlier intraday. With bitcoin (BTC-USD) off around 65% from its November peak, it's not surprising that Coinbase (COIN) stock is also nosediving roughly 75% from its peak in November. Coinbase's deeper slump compared with that of bitcoin implies that the exchange acts as a levered proxy for bitcoin. Note SA's Quant Rating in mid-May had warned investors that Coinbase (COIN) shares are at high risk of performing badly due to negative EPS revisions as well as declining growth. A colossal amount of crypto-focused firms finished the session higher, including MicroStrategy