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What happened

Cryptocurrencies were a stinker of an asset class on Wednesday, but you wouldn't know that from the performance of one of their top exchange operators. Coinbase (COIN 5.13%) saw its share price rise by almost 3% on the day following an analyst's price-target bump; this performance trounced that of the S&P 500 index, which wilted at a 0.7% pace.

Well before market open that day, Atlantic Equities' Simon Clinch made the move. He now pegs Coinbase's fair value at $63 per share, far higher than his previous $46 estimation. He's not ready to change his recommendation, however, which is a bit of a shame for investors as he continues to rate the stock a neutral.

Clinch's latest research note on Coinbase wasn't immediately available. However, it comes just after a very bullish Tuesday for cryptocurrencies in general and related assets specifically. That day Bitcoin, inarguably the bellwether coin of its realm, notched a nearly one-year price high -- $26,500 per coin, to be exact.

That had a knock-on effect with said assets, and as a leading crypto exchange operator, Coinbase certainly qualifies.

Yet cryptocurrencies and, by extension, Coinbase, might be in for some rocky times ahead.

Inflation is still a drag on both the U.S. and the global economy. While investors are hoping for a break or a comedown in the Federal Reserve's recent series of interest rate rises, this is by no means assured. High rates tend to dampen enthusiasm for investments considered to be more speulative, and as a group, cryptos and crypto-adjacent securities are usually lumped into this category.

Eric Volkman has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy.

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Why Coinbase Stock Was a Cryptocurrency Winner on Wednesday - The Motley Fool