Good morning and welcome to the stock market today! Dive in with InvestorPlace below for more on the red-hot Coinbase IPO and everything else investors can expect the stock market to do today.
To start, the major indices are all gaining on Wednesday morning. The S&P 500 is up 0.16%, while the Dow Jones Industrial Average is up 0.6%. The Nasdaq Composite is also in the green, up slightly to kick off the day.
So what else will the stock market do today? Check out the top stories.
What Will the Stock Market Do Today? Watch the Coinbase IPO.
Today, Coinbase will start trading on the Nasdaq Exchange, and Wall Street is paying close attention.
Largely, that is because of what Coinbase represents to crypto bulls, and what it means for individual cryptocurrencies. As we have previously written, Coinbase has a known effect on the cryptos listed on its platform. Tokens see an average return of more than 90% in the first few days after their listing — high than on any other exchange. That has investors paying close attention to a handful of altcoins following their recent listings. Coinbase is also the second-largest cryptocurrency exchange in the world.
And importantly, it is the largest crypto startup to list on a major U.S. exchange yet.
As Erin Griffith wrote for the New York Times, many crypto bulls see the Coinbase IPO today as vindication, as proof as Bitcoin (CCC:BTC-USD), Ethereum (CCC:ETH-USD) and so many other coins merit the hype. You can consider it a coming-out party as Griffith calls it, or perhaps a debutante ball.
As you prepare for COIN stock to make a splash when it starts trading, consider these stories from InvestorPlace. Make sure to prep your mind and your portfolio for the Coinbase IPO:
- Coinbase IPO: 11 Things to Know As COIN Stock Starts Trading
- Meet the Other COIN: 11 Things to Know to Invest in the New Binance Coinbase Stock Token
- Coinbase IPO: Can COIN Stock Really Hit $600 After Its April 14 IPO?
- Next Cryptocurrency to Explode in 2021? 8 Tokens on Watch Thanks to the Coinbase IPO
- DOGE on Coinbase? Dogecoin Investors Bark for Inclusion Ahead of Coinbase IPO
- Coinbase IPO: Will the Coinbase Valuation Be $19B or $230B When COIN Starts Trading?
Dogecoin: From 14 Cents to $10?
Dogecoin (CCC:DOGE-USD) is on fire.
Investors have been barking up the meme-coin all week, and it is really paying off. For the first time ever, DOGE traded above the 14-cent mark, setting a new all-time high. This also means that Dogecoin has posted simply impressive gains so far this year, up 2,000%. This is likely not entirely surprising to crypto bulls, especially with analysts continuing to up their Dogecoin price predictions.
But how far can DOGE go? As critics are quick to point out, the altcoin was created by its founders to be a joke. That could keep it from getting the type of institutional backing that Bitcoin and Ethereum are now.
However, Dogecoin has some powerful forces on its side. Celebrity backers like Elon Musk continue to tote the coin, promising to take it to the actual moon. The Mavericks began accepting it as a payment for tickets and merchandise. The passionate #DogeArmy promises to take DOGE to $1 as soon as possible.
InvestorPlace Markets Analyst Tom Yeung thinks there is a path for DOGE to reach $10, as long as two things happen. The first is that Dogecoin needs to address its inflationary structure. Unlike Bitcoin, of which there is a limited supply of tokens, more DOGE gets minted every day. Because of this, Yeung says it will be hard for Dogecoin to sustain the huge gains we have seen in BTC. Additionally, Yeung says that some of its high-profile backers need to put their money where their mouths are. In other words, although Musk is responsible for several short-term rallies, he could take DOGE to $10 if he started a charitable Dogecoin foundation to fund development. Investors who want to see that happen need to be ready to contribute.
What Else We’re Watching
- Major cryptocurrencies and Dogecoin are not alone in their morning rally. As InvestorPlace contributor Robert Lakin highlighted, VeChain (CCC:VET-USD) is also getting a boost, with VET reaching a new all-time high. It seems big-name partnerships and Coinbase IPO hype are the driving catalysts.
- Bernie Madoff died in prison on Wednesday morning at the age of 82 — read more from Axios.
- Nikola (NASDAQ:NKLA) and other fuel cell stocks are on the move Wednesday. The driving catalyst is a deal Nikola just struck to build out the hydrogen infrastructure in Germany.
- ViacomCBS (NASDAQ:VIAC) may have made headlines thanks to the Archegos Capital Management fallout, but InvestorPlace Markets Analyst Joanna Makris says there is another reason you should be paying attention to VIAC stock.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.