April 13, 2024
Crypto

Crypto-Related Company Stocks Jump as Digital Currency Rally Continues


Key Takeaways

  • Shares of companies in the cryptocurrency industry took off Wednesday as the rally in digital currencies continued.
  • MicroStrategy Inc., the biggest corporate holder of Bitcoin (BTC), purchased an additional $615.7 million worth of the cryptocurrency this week.
  • Optimism about a potential BTC exchange-traded fund (ETF) and possible Fed interest rate cuts have fueled the rise in crypto prices this year.

Stocks related to the cryptocurrency industry advanced Wednesday as Bitcoin (BTC) and most other digital currencies continued their recent rally.

Shares of Coinbase Global Inc. (COIN) and Marathon Digital Holdings Inc. (MARA) rose to their highest levels since early last year, and Riot Platforms Inc. (RIOT) shares traded near their 2023 highs.

The stocks and coins got a boost when MicroStrategy Inc. (MSTR), the largest corporate holder of Bitcoin, said it purchased 14,620 BTC for about $615.7 million Wednesday. The company’s executive chairman, Michael Saylor, said in a post on X (formerly Twitter) that the average price for the Bitcoin it purchased was $42,110 each. He added that MicroStrategy now holds 189,150 BTC as of Tuesday. MicroStrategy shares also reached a 2023 high on Wednesday. 

Two factors have been major drivers of rising crypto prices this year. One is optimism that U.S. regulators are close to approving the first Bitcoin exchange-traded fund (ETF), giving cryptocurrencies access to the larger financial markets. The second is the expectation that the Federal Reserve has ended its aggressive interest rate hikes aimed at cooling inflation and will begin lowering them starting next year. 

So far this year, the two biggest cryptocurrencies, Bitcoin and ether (ETH), have soared in value, with Bitcoin up more than 150% above $43,000, and ether nearly doubling.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *