Coinbase shares surge as crypto optimism and regulatory momentum build

• COIN

Coinbase (NASDAQ:COIN) shares jumped 7.1% in pre-market trading on Friday as investors responded to a combination of bullish comments from CEO Brian Armstrong, growing expectations of US crypto legislation and a powerful short squeeze across digital asset markets.

The advance followed Armstrong’s appearance on CNBC and continued positive sentiment stemming from the recent White House crypto summit, which has increased expectations of a more supportive regulatory framework for the US digital asset industry.

Armstrong sees potential for new crypto bull market

During his CNBC interview, Armstrong struck an optimistic tone on the outlook for cryptocurrency trading activity.

“there’s a good chance we’re on the cusp of the next bull market for spot trading in crypto,” Armstrong said.

The comments attracted particular attention given Coinbase’s position as one of the largest US cryptocurrency exchanges and Armstrong’s recent engagement with the Trump administration.

Armstrong also said he expects the pending Digital Asset Market Clarity Act to secure the required 60 votes and pass in September, giving investors a potential timeline for legislation designed to clarify oversight of the US cryptocurrency market.

Record crypto short squeeze accelerates rally

A historic wave of <a href="https://xpertsstudio.com/bitcoin-heads-for-best-week-in-3-years-record-short-liquidations-could-open-the-door-to-126k-standard-chartered-says/” title=”Bitcoin Heads For Best Week In 3 Years – Record Short Liquidations Could Open the Door To $126K, Standard Chartered Says”>liquidations in cryptocurrency derivatives provided another major catalyst for the sector.

Around $2.7 billion of crypto short positions were liquidated over a 24-hour period, reportedly the largest such event since records began in 2021. More than $1 billion of Bitcoin short positions were closed in approximately one hour alone.

The squeeze helped propel Bitcoin above $71,000 as traders betting on falling prices were forced to close their positions, adding further buying pressure to the market.

Crypto-linked equities benefited from the move, with Strategy (NASDAQ:MSTR) and Hut 8 (NASDAQ:HUT) also advancing as Bitcoin reclaimed the $70,000 threshold.

Coinbase reduces reliance on spot trading

Coinbase’s improving underlying business mix has provided additional support for investor sentiment.

During the second quarter of 2026, the company recorded a third consecutive all-time high in its share of cryptocurrency trading volumes, reaching 10.3%.

Coinbase also delivered its 14th consecutive quarter of positive adjusted EBITDA, while subscriptions and services now account for nearly half of net revenue.

The increasing contribution from recurring and service-related income reduces Coinbase’s dependence on Bitcoin spot-trading cycles and potentially gives the business a more diversified earnings profile.

Source: finance.yahoo.com