Stocks in US Markets Gain Strength from Bitcoin: How Much Did Each Stock Rise?

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• Crypto stocks experienced a significant surge amid a strong Bitcoin price rally and growing optimism around potential interest rate cuts in the US.
• The increase in Bitcoin’s value saw a 4.1% rise to $41,950, directly impacting related stocks. For instance, Coinbase experienced a significant increase of 7.5%.
• ProShares Bitcoin Strategy ETF, tracking Bitcoin futures, gained 7.7%, reaching its highest level in over a year.

Crypto stocks and Bitcoin ETFs gained momentum, drawing strength from the rapid rise in Bitcoin’s price: Which stocks and ETFs gained?

Bitcoin’s Surge Empowers Stocks

Crypto stocks experienced a significant surge amid a strong Bitcoin price rally and growing optimism around potential interest rate cuts in the US. Bitcoin surpassing $42,000, a level not seen since April 2022, became a significant factor in buying these stocks.

In recent weeks, it has been observed that companies related to crypto have seen an increase in their fortunes. This surge is largely attributed to positive market sentiment around the possible approval of Bitcoin exchange-traded funds (ETFs) traded in the US. The market’s response reflects a broader trend of increasing institutional acceptance of cryptocurrencies.

The increase in Bitcoin’s value saw a 4.1% rise to $41,950, directly impacting related stocks. For instance, Coinbase experienced a significant increase of 7.5%. This increase is particularly significant considering the reported decrease in trading volume for the company in the third quarter, especially when compared to the 62% increase in November.

Similarly, shares of Microstrategy, well-known for its significant Bitcoin investments, rose by 8.2%. This increase followed the company’s substantial Bitcoin purchase of approximately $593 million last month. Bitcoin mining companies also did not lag behind in this rally. Riot Platforms (RIOT.O), Marathon Digital, and CleanSpark recorded increases ranging from 10.3% to 18.8%, adding to their impressive gains in November.

Gains in the Crypto Market with ETF Expectations

ProShares Bitcoin Strategy ETF, tracking Bitcoin futures, gained 7.7%, reaching its highest level in over a year. In contrast, ProShares Short Bitcoin Strategy ETF, allowing trading against Bitcoin futures, experienced a 7.7% decline.

The potential approval of a Bitcoin ETF is seen as a significant catalyst, expected to make the market more easily regulated and attractive for investment. At the beginning of the year, there was muted sensitivity to cryptocurrencies and related assets due to significant exits from the sector following a series of collapses in 2022. However, the recent rally has revived investor confidence; Bitcoin is currently up over 150% in 2023, potentially indicating its best annual performance since 2020.

This resurgence in the crypto market is attributed to factors such as the favorable macroeconomic conditions, technological advancements, and the increasing mainstream acceptance of digital currencies. The rise in crypto stocks in the US market reflects growing confidence in the crypto market, mirroring both Bitcoin’s strong performance and anticipated regulatory developments in ETFs. This trend underscores the dynamic nature of the integration of the crypto market with traditional financial systems.