Cryptocurrency Stocks Surge as Bitcoin Hits Near 19-Month High
Cryptocurrency stocks related to bitcoin mining and tracking saw a surge on Friday as the world’s largest cryptocurrency continued its recent rally to touch a near 19-month high, driven by improving risk appetite.
Bitcoin’s Rise and Optimism for ETF Approval
Bitcoin rose by 1.6% to $38,337, continuing its upward trend since October, fueled by optimism regarding the potential approval of a spot exchange-traded fund (ETF) that is expected to attract more capital investments in the digital asset sector.
Crypto economist Noelle Acheson stated, “Tailwinds have been gathering strength all year, especially in recent months, as spot ETF expectations build, the Binance uncertainty is resolved, and 2024’s accelerated money printing becomes more inevitable,” referring to the bitcoin rally.
Surge in Bitcoin Miners’ Stocks
Shares of bitcoin mining companies, whose profitability improves as bitcoin’s value rises, saw gains, with Riot Platforms, Marathon Digital, and TeraWulf rising between 1.7% and 4%. J.P. Morgan raised its price targets on Cipher Mining, CleanSpark, Iris Energy, Marathon Digital, and Riot Platforms to reflect the bitcoin rally.
The mining companies are also increasing production ahead of bitcoin’s “halving” event next year, when rewards for producing the tokens are reduced by half.
Rise in Coinbase’s Shares and Future Prospects
Coinbase’s shares increased by about 2.5% following a 62% jump in November, outperforming bitcoin’s 11% climb, despite reporting a decline in trading volume earlier in the month. CFRA Research analyst Michael Elliott stated, “Higher crypto prices should lead to a boost in transaction volume and transaction revenues for Coinbase as we enter 2024.”
However, Elliott cautioned that the crypto exchange faces legal challenges and new regulations that may result in continued volatility for the stock.
ETF Approval Bets and Other Gainers
The anticipation for ETF approval countered concerns after the founder of the world’s largest crypto exchange, Changpeng Zhao, stepped down and pleaded guilty to breaking U.S. anti-money laundering laws. Other gainers included U.S. software developer and bitcoin investor Microstrategy, up nearly 3.5%, and ProShares Bitcoin Strategy ETF, which added 2.1%.
Overall, the surge in cryptocurrency stocks reflects the growing confidence and optimism in the market as investors anticipate the approval of a spot ETF for bitcoin. The ongoing development in the digital asset sector and the upcoming “halving” event next year are contributing to the positive outlook for the cryptocurrency market.
I have been a full-time professional writer for over 10 years, and have written for some of the biggest publications in the world. My work revolves around cryptocurrencies and blockchain technology, and I am widely considered to be one of the leading experts in these fields.I have written two books on the subject matter, and my articles have been featured in major news outlets such as The Wall Street Journal, Forbes, and Huffington Post. In addition to writing, I also give talks and seminars on cryptocurrency investing, and am a regular commentator on CNBC, Bloomberg, and other financial news networks.
