The company’s stock is up more than 100 per cent this year as the crypto industry started recovering from the FTX exchange’s collapse

Crypto exchange Coinbase’s shares climbed over 20 per cent on Thursday following the US Federal Reserve’s latest interest rate hike and as Fed Chair Jerome Powell noted progress in fighting high inflation.

The U.S.-based exchange also got a boost after it won a dismissal on Wednesday of a proposed class-action lawsuit by customers who claimed the crypto exchange sold them unregistered securities.

The company’s stock is over 100 per cent higher in 2023 as the crypto industry began recovering from FTX’s collapse. Since Coinbase makes most of its revenue from trading volume, its stock price is highly correlated with bitcoin, which has been rallying so far this year.

U.K. bank Barclays said in a note on Thursday that Coinbase volumes increased 56 per cent in January from the previous month, and that volumes are now near levels seen in October before FTX’s collapse, but remain below the 2022 average.

Most crypto-linked stocks are also rallying, along with the wider equity markets. Business software company MicroStrategy, which sometimes acts as a bitcoin proxy because of the large amount of its holdings, increased nearly 10 per cent, while crypto bank Silvergate Capital shares surged over 30 per cent on Thursday.

We might be getting six more weeks of winter, but it does not appear like we will be seeing an ice age in crypto, said Edward Moya, senior market analyst at Oanda, referring to the latest Groundhog Day forecast. January was robust for crypto and the (FOMC rate) decision helped keep all risky assets going higher, Moya said.

Meanwhile, crypto miners, which are heavily exposed to bitcoin’s price, are also outperforming. Stocks of miners Marathon Digital, Riot Platforms, Hive Blockchain, CleanSpark and Hut 8 were among those that jumped over 10 per cent. Peer Cipher Mining outperformed the group, increasing by over 20 per cent, after hitting all-time high in computing power in January.

Bitcoin was trading at $23,830 on Thursday, while ether, the native token of the Ethereum blockchain, gained 2 per cent to trade at $1,675.

Bitcoin is riding this risk-on mood from Wall Street, but it might struggle to break above massive resistance from the $25k level​, Moya noted.

The tech-stocks heavy Nasdaq index gained nearly 3 per cent, while the S&P 500 rose 1.3 per cent on Thursday.