Crypto stocks saw a rebound on Friday, with Coinbase (COIN), Strategy (MSTR), and Bitmine Immersion (BMNR) stock recording a 4-6% leap. Is this hopeful for crypto prices?
The recovery came in response to a much-needed rebound in crypto prices, with Bitcoin price bouncing back to $110K from $106.5K.
Crypto traders remain cautious about further upside in the crypto market this week, mainly due to options expiry today and outflows from spot Bitcoin and Ethereum ETFs.
Stocks Recovery Hints at Crypto Prices Rebound Today
Strategy (MSTR) and Coinbase (COIN) stock prices rebounded over 6% to $269.82 and 4% to $342.93 in premarket trading hours on October 31.
This comes after both crypto giants reported profits in their Q3 earnings reports. Also, other crypto stocks such as Robinhood Markets (HOOD), USDC-issuer Circle Internet, and Bullish saw over 2% jump.
Cathie Wood’s Ark Invest funds stacked up Robinhood stock ahead of earnings next week.
Bitcoin mining shares, including MARA Holdings (MARA), Riot Platforms (RIOT), and CleanSpark (CLSK), bounced nearly 3% in premarket trading. Meanwhile, Core Scientific (CORZ) share price jumped 5.80% to $21.94.
The move comes as the Bitcoin price rebounded almost 4% after the crypto market crash. BTC price is trading near $110K at the time of writing.
Will the crypto market make a broader recovery as prices rebound with support from crypto stocks?
Bitmine (BMNR), SharpLink (SBET) Led Ethereum Treasury Crypto Stock Market Gains
Bitmine Immersion Technologies (BMNR), the largest corporate holder, was trading 6% higher in premarket hours on Friday. The stock price closed 10.47% lower at $44.55 on Thursday.
Fundstrat Tom Lee-backed company holds 3.31 million ETH worth $13.5 billion. Bitmine Immersion remains the main force behind ETH price rally this year.
SharpLink Gaming (SBET) stock price was trading more than 4% higher at $13.32 during the premarket hours. SharpLink announced 19K ETH purchased earlier this week, with holdings reaching $3.5 billion.
Other Ethereum treasury stocks, including BTCS, Bit Digital (BTBT), GameSquare Holdings (GAME), BTC Digital (BTCT), and BioNexus Gene Lab (BGLC), also rebounded in premarket hours on Friday.
Bitcoin Options Traders Eye $111K After Options Expiry, Crypto Prices Recovery Likely?
123K BTC options with a notional value of $13.52 billion expire on the largest derivatives crypto exchange Deribit today. The put-call ratio was 0.70, indicating bullish sentiment among traders.
Moreover, the max pain price was $114,000, way higher than the current BTC price of $110,270 at the time of writing.
This signaled a high chance of a recovery for Bitcoin price, with crypto market traders adjusting their positions amid intense volatility.
However, the 24-hour put volume was higher than the 24-hour call volume. The put-call ratio was 1.30, indicating traders were buying more put options, hedging downside risks due to the recent crypto market crash.
CoinGlass data showed that total Bitcoin futures open interest increased in the last few hours. The 24-hour BTC futures open interest was down almost 2% at $71.31 billion.
In the last 4 hours, BTC futures open interest on CME and Binance climbed by more than 0.70% and 0.68%, respectively.
Crypto analysts, including Michael van de Poppe, predicted that Bitcoin price needs to break the $112K level. If it does, then a recovery to $114K, and even $117K, can be expected.