Key Points
- US crypto-related stocks have seen a positive trend as Bitcoin fluctuates around its all-time high of $73,000.
- Increased crypto adoption from institutional players and the upcoming Bitcoin halving event contribute to market recovery.
US-based stocks linked to cryptocurrencies started the week on a high note, trading higher as Bitcoin, the largest digital asset, oscillated near its all-time high of $73,000.
Performance of Crypto Stocks
As per a recent report from Coindesk, shares of the well-known crypto trading platform Coinbase Global Inc (NASDAQ: COIN) witnessed a 6.68% rise to $256.99. The exchange, which went public in 2021, has had a successful year so far. It disclosed its Q4 2023 results in February, which showed that it had returned to profitability.
Stocks of MicroStrategy Inc (NASDAQ: MSTR), a well-known corporate Bitcoin holder and business intelligence firm, increased by 5.14% to $1,512.99. Similarly, BlackRock’s Bitcoin Exchange-Traded Fund (IBIT) saw about a 6.5% gain in pre-market trading.
Bitcoin mining-related stocks also participated in the rally. Notably, Hut 8 Corp (TSE: HUT) gained 5.6% CAD$12.2, while Marathon Digital Holdings Inc (NASDAQ: MARA) increased by 5.2% to $17.95. Argo Blockchain Plc (LON: ARB), traded on the London Stock Exchange, saw a 5% increase.
Factors Driving Market Optimism
The crypto market has been buoyed since the beginning of the week due to several factors that have spurred renewed optimism among investors and increased interest in cryptocurrencies. Despite facing challenges due to global economic conditions in 2023, the market is demonstrating resilience.
A significant factor contributing to the market’s recovery is the increased crypto adoption from institutional players following the approval of spot Bitcoin Exchange Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC). Global crypto assets recorded inflows of $708 million last week, raising total assets under management to $53 billion.
Bitcoin Halving Event’s Impact
Currently, Bitcoin is trading at $70,779, down by 2.05% in the past 24 hours, with its market cap standing at $1.3 billion. Despite the price drop, Bitcoin’s trading volume has increased by 14.67% to $35 billion in the past 24 hours, indicating that investors are still keen on accumulating the coin.
The upcoming Bitcoin halving event in 2024, scheduled for later this month, is believed to have brought substantial investments into the market, supporting overall sentiment. The halving cuts the amount Bitcoin miners receive for adding blocks to the blockchain by 50%.
After the event, miners are expected to receive 3.125 BTC in rewards. Currently, miners earn 6.25 BTC for each block, a figure set at the last halving event in 2020. Analysts from Coinbase have stated in their research that the reduction in miners will help decrease Bitcoin supply, setting the market for good returns in the upcoming quarter. There are many bullish projections for Bitcoin price post halving, further fuelling optimism.
