Bitcoin is raising the tide for many crypto stocks

After the launch of nearly a dozen spot Bitcoin ETFs proved to be a sell-off event for the popular cryptocurrency, Bitcoin’s price recovered and rose to a two-year high.

Bitcoin rose to above $52,000 on Wednesday, marking its highest level since December 2021 and returning its market capitalization above $1 trillion. This surge was mainly attributed to the success of newly launched bitcoin spot ETFs in the US, which attracted a record inflows of $651 million in a single day, according to James Butterfill, head of research at CoinShares.

These ETFs have brought in $9.5 billion in new investments since their debut on January 11, with more than 71% of recent investments originating from them, excluding the Grayscale Bitcoin ETF New York Stock Exchange: GBTC. The wait for approval of bitcoin exchange-traded funds by the US Securities and Exchange Commission (SEC) contributed significantly to Bitcoin’s rally in 2023.

Despite a slight price decline following ETF approvals, investor sentiment for Bitcoin remains bullish. This sentiment will likely increase with the upcoming April halving, which has historically led to significant price increases. Duncan Ash, head of product go-to-market strategy at Coincover, highlighted the potential impact of the halving on the price of Bitcoin, saying that on February 12 alone, ETFs purchased ten times the amount of Bitcoin mined daily. If historical patterns hold, investors can expect continued growth in the price of Bitcoin in the coming months.

With the price of Bitcoin reaching levels not seen since 2021, significant momentum and volatility has returned to several cryptocurrency-related stocks, with some even hitting new 52-week highs. Among the noteworthy artists are MicroStrategy NASDAQ:MSTR, Global Coinbase NASDAQ: MONEY, Anti-riot blockchain NASDAQ: REVOLTAND Digital marathon entries NASDAQ: MARA.

Let’s delve into the dynamics of these four popular cryptocurrency stocks.

MicroStrategy NASDAQ:MSTR

MicroStrategy is a global provider of business analytics software and services. MicroStrategy is actively involved with Bitcoin, holding and acquiring the cryptocurrency as part of its strategic investment strategy. As of November 1, 2023, MicroStrategy owns 158,400 bitcoins, purchased at an average purchase price of $29,609.65 per bitcoin, for a total investment of $4.69 billion.

Thanks to Bitcoin’s recent surge, MSTR shares year-to-date are now up close to 15% and trading at 52-week highs. The stock has a buy rating based on four analyst ratings and a consensus price target of nearly 15% downside.

Global Coinbase NASDAQ: MONEY

Coinbase Global is a major cryptocurrency exchange that offers tools for trading over 200 cryptocurrencies. Although negative year-to-date, COIN shares have recently impressed after rising more than 60% in the previous three months and 131% over the previous year.

There is, however, negative sentiment surrounding the stock, as analysts expect a downside of nearly 40% and the stock holds considerable short interest amounting to nearly 11% of the float.

Riot control platforms NASDAQ: REVOLT

Riot is an American blockchain technology company that aims to become the leading Bitcoin mining services provider in North America. The company offers cryptocurrency mining hardware, hosting services, and proprietary software. RIOT stock is near 52-week highs and has seen significant resistance thanks to Bitcoin’s recent move. Over a broader time frame, stocks have impressed significantly. The stock is up nearly 65% ​​over the previous three months and 165% over the previous year.

Digital marathon NASDAQ: MARA

Mara is a digital asset technology company based in Las Vegas. The company specializes in blockchain-based mining and produces digital assets such as Bitcoin. Despite significant short interest of 21% and analysts predicting a huge 41.7% decline, MARA stock continued to rise. Year to date, the stock is now up more than 15%, adding to its impressive 239% gain over the previous year.

Before considering Coinbase Global, you’ll want to hear it.

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