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Coinbase jumps 22%, heads for biggest gain since post-election pop on S&P 500 inclusion

1. Coinbase shares surged over 20% after its S&P 500 inclusion announcement. 2. S&P Global confirmed Coinbase's replacement of Discover Financial Services in the index. 3. Coinbase's recent earnings showed a decline in net income but a revenue rise. 4. Company plans a $2.9 billion acquisition of Deribit to expand internationally. 5. Bitcoin has recently surpassed $100,000, boosting crypto market sentiment.

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FAQ

Why Bullish?

Inclusion in S&P 500 generally attracts new investments, boosting stock prices. Historical examples show similar effects; stocks often experience gains when added to major indices.

How important is it?

The news directly affects COIN due to its index inclusion and acquisition plans. Market dynamics and investor interest may rise significantly due to recent earnings and broader crypto trends.

Why Short Term?

The immediate rally from S&P 500 inclusion can lead to short-term gains. However, volatility in crypto markets may affect long-term stability.

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