Coinbase and Circle Stocks Rise as FOMC Meeting Looms

The Federal Reserve's upcoming FOMC meeting on July 28-29 has left investors uncertain about whether interest rates will be hiked or remain unchanged. Despite a 33% chance of a 25 basis point increase, both Coinbase (NASDAQ: COIN) and Circle (NASDAQ: CRCL) stock prices have risen today, mirroring the 1.69% increase in Nasdaq-100 futures.

The easing geopolitical tensions between the US and Iran are overshadowing concerns about the Fed's potential hawkish stance. According to data from the CME FedWatch Tool, 66.3% of investors expect the Fed to keep interest rates at 3.50%-3.75%, while 33.7% predict a hike to 3.75%-4%. This could lead to lower stock prices for COIN and CRCL.

A hawkish FOMC meeting could potentially push the price of Coinbase shares down to $152, while Circle's shares might drop below $60 if bears tighten their grip. However, ARK Invest continues to buy more CRCL shares, with analyst Lorenzo Valente calling Circle a 'misunderstood company' that has evolved beyond being just a USDC issuer.