Coinbase Defies Morgan Stanley Crash Warning with 8% Surge

Coinbase (COIN) stock rose by almost 8% on Monday, defying Morgan Stanley's warning of a potential market crash within 30 days.

Morgan Stanley's chief US equity strategist, Mike Wilson, attributed the risk to oil prices potentially reaching $120-$140 per barrel, which could lead to a liquidity drain. However, Coinbase shrugged off this warning and continued its upward trend.

The change in Coinbase's fortunes can be attributed to Compass Point's analyst Ed Engel, who moved Coinbase from 'sell' to 'neutral' on Monday.

Engel based his decision on the potential passage of the Digital Asset Market Clarity Act, which would decide which regulator polices crypto. If passed, this bill could lead to a rulebook for Coinbase, allowing it to list tokens without fear of being sued.