Following BTC’s annual high, crypto stocks are booming as demand surges.
The cryptocurrency market is riding a wave of optimism as bitcoin, the bellwether of the digital asset space, soars to $42,000 a year. As the crypto market recovers, crypto stocks also enjoy high momentum.
Bitcoin's rise has sparked a massive rally among US-listed cryptocurrency-related stocks. Companies like Microstrategy and Coinbase are making huge profits.
Bullish Crypto Market Sentiment Turns Into Stocks
The rally was sparked by US interest rate cuts and the approval of bitcoin funds traded on the US stock market.
Bitcoin, the world's largest by market capitalization, rose 4.1% to a peak of $42,162, the highest since April 2022. Ipek Ozkardeskaya, market analyst at Swiss Quotation Bank, explains:
“The adoption of (ETFs) will be huge in terms of investment appetite because it will be easier to manage, more attractive and easier to invest in.”
Companies like Coinbase, a leading crypto exchange, saw its stock jump 7.5%, up from 62% in November. Meanwhile, popular bitcoin investor MicroStrategy gained 8.2 percent.
The firm, led by executive chairman Michael Saylor, has accumulated 174,530 Bitcoins as of August 2020. As the price of Bitcoin rose to $42,000, MicroStrategy's holdings rose to about $7.3 billion, translating to a profit north of $2 billion.
Read More: 9 Best Artificial Intelligence Stocks to Buy in 2023
This bullishness also extends to Bitcoin miners such as Riot Platforms, Marathon Digital and CleanSpark. The ProShares Bitcoin Strategy ETF, which tracks bitcoin futures, rose 7.7 percent, marking the highest potential in more than a year.
Robinhood sees an increase in Crypto Trading activity as it expands to the UK
Meanwhile, Robinhood, the popular financial services platform, plans to launch in the UK. The move is part of the company's strategy to offer the dollar and US equity markets to a wider audience.
Vlad Tenev, CEO of Robinhood, said that demand and trading activity has increased in the crypto sector as the price of BTC has increased. Tevev said:
“I think you're starting to see retail investors waking up to some parts of the rally. I think the crypto movement, they're seeing some kind of bottoming out.”
In November, trading volume on Robinhood Markets Inc.'s cryptocurrencies increased significantly, with trading volumes approximately 75% higher than in October 2023. This shows the high activity and demand for cryptocurrency trading on the Robinhood platform during that period.
UAE Crypto Demand Rises 50% First Crypto-Related Listing
In a significant development in the Middle East, Phoenix Group PLC, a retailer of cryptocurrency mining hardware, rose by 50% in Abu Dhabi at the beginning of its IPO to $371 million.
This marked the first crypto-related listing in the region, demonstrating strong investor interest despite the UAE's tight regulation of the crypto industry.
In conclusion, the rally among crypto stocks highlights the growing industry interest in cryptocurrencies. Potential interest rate cuts in the US and the approval of Bitcoin ETFs are significant motivators.
Meanwhile, companies like Robinhood are expanding their global footprint. Regions like the Middle East are seeing their first crypto-related listings.
As the crypto market evolves, these developments point to a maturing and growing mainstream industry.
Read more: Crypto vs. Stocks: Where to invest your money in 2023
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