The recent ruling in the SEC vs. Ripple case has had a significant impact on the crypto market and beyond. Amid XRP’s price pump on the back of the ruling, Coinbase stock (COIN) also experienced a significant surge.
In a recent tweet, David Schwartz expressed his hindsight regrets, stating, “The first thing I should have done when I heard about the ruling was buy Coinbase stock.”
The first thing I should have done when I heard about the ruling was buy Coinbase stock.
— David "JoelKatz" Schwartz (@JoelKatz) July 14, 2023
Read Also: Ripple CTO David Schwartz Shares Likely Date For XRP Lawsuit Summary Judgment
Schwartz’s comment highlights his realization that the positive outcome of the SEC vs. Ripple case had a huge impact on the market beyond XRP. The recent events underscore the unexpected correlation between the legal victory and Coinbase’s stock price surge.
The ruling by Judge Torres, which clarified that XRP is not a security, instilled confidence among investors and traders. Following the news of the judgment, COIN surged from $84.41 at 15:00 (UTC) to $109.41 at 23:30 (UTC) on July 13, which marked a 29.6% increase in eight hours.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Intriguing Activity in the Options Market
A prominent market tracking tool, Unusual Whales, further shed light on the Coinbase stock rally.
Yesterday, $COIN went +24% due to the SEC losing their Ripple, $XRP case.
The news came out at 8:27 am PST.
At 8:26 traders started going heavy into $COIN 84 & 85 calls expiring in ONE day.
Those went +860%, from $2.50 to $24.
Someone always knows.
Unusual. pic.twitter.com/nekoZl6xOM
— unusual_whales (@unusual_whales) July 14, 2023
In the tweet, unusual whales noted that the news about XRP’s victory against the SEC broke out at 8:27 (PST).
However, at 8:26 (PST), many traders began purchasing “calls” for Coinbase stock, specifically the ones with a strike price of 84 and 85. Calls are financial instruments that give traders the right, but not the obligation, to buy a specific stock at a predetermined strike price within a certain period.
These particular calls were set to expire in just one day. This suggests that traders had a short window of time to exercise their right to buy Coinbase stock at the predetermined price. The demand for these calls increased rapidly, resulting in a substantial surge of 860%.
Read Also: Ex-SEC Director: It’s Reasonable for Judge Torres to Lock Ripple’s XRP Escrow Permanently
Unusual Whales emphasized that this activity suggests that some traders had prior knowledge or a strong intuition about the outcome of the Ripple case and expected Coinbase’s stock price to surge.
In conclusion, the recent events surrounding the SEC vs. Ripple case have had a significant impact on the crypto market and beyond. The surge in Coinbase stock (COIN) price is a clear example of this. It will be interesting to see how the market reacts in the coming days and weeks.
Follow us on Twitter, Facebook, Telegram, and Google News
