In the wake of a more than 4% surge in Bitcoin’s BTC/USD price over the last 24 hours, stocks linked to the cryptocurrency have experienced a notable increase.
This upward trend comes as experts caution against adopting a bearish outlook at this juncture.
What Happened: As reported by CoinDesk on Friday, stocks associated with cryptocurrency ended the week on a high note.
Stocks in companies such as Cipher Mining Inc. CIFR, Mawson Infrastructure Group Inc. MIGI, Core Scientific Inc. CORZ, Sphere 3D Corp. ANY, TeraWulf Inc. WULF, Bitfarms Ltd. BITF, Marathon Digital Holdings LLC. MARA, and Hut 8 Corp. HUT saw increases ranging from 5% to 23%.
Other crypto-related stocks, including Coinbase Global Inc. COIN and MicroStrategy Inc. MSTR, also experienced gains of between 4% and 9% on Friday.
MicroStrategy holds approximately 189,000 Bitcoin in its balance sheet.
Why It Matters: The resurgence in crypto stocks follows a week of selling, with some bullish investors seemingly returning to the crypto market. This comes amid a challenging market landscape, where market concentration in giants and small-caps’ unique bear performance, despite the S&P 500 ending the week on a positive note, paints a diverse challenging picture.
Stocks offering investors exposure to Bitcoin experienced a downturn following Bitcoin's price drop to levels below $41,000, despite initial enthusiasm surrounding the introduction of spot crypto exchange-traded funds (ETFs) in the United States.
This downturn had a spillover effect on companies holding significant Bitcoin assets, including MicroStrategy and Coinbase.
Markus Thielen, head of research at 10x Research, advised against turning bearish, stating that the macro environment will remain a tailwind in 2024, and the US election cycle will see a constructive fiscal response that will lift asset prices higher.
"The demand is very real and this all should be viewed as very bullish long term," according to technical analyst Pentoshi.
Price Action: At the time of writing this story, Bitcoin was trading at $41,813, up 4.05% in the last 24 hours, according to data from Benzinga Pro.
Read Next: Bitcoin ETFs Mark A Transformative Moment
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Roy Buri from Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
