Crypto Stocks Soar Amid Rising Industry Interest After Bitcoin Hits New Yearly Peak

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The cryptocurrency market is currently riding a wave of optimism as Bitcoin, the bellwether of the digital asset space, soared to a yearly high of $42,000. Crypto stocks have also enjoyed bullish momentum as the crypto market recovers.

Bitcoin’s surge has triggered a bullish rally among US-listed cryptocurrency-related stocks. Companies such as Microstrategy and Coinbase reaping significant gains.

Bullish Crypto Market Sentiment Turns to Stocks

This rally is fueled by a combination of anticipated US interest rate cuts and the potential approval of US stock market-traded bitcoin funds.

Bitcoin, the world’s largest cryptocurrency by market capitalization, climbed 4.1% to reach a peak of $42,162, its highest since April 2022. A confluence of factors has catalyzed this rally. Ipek Ozkardeskaya, a senior market analyst at Swissquote Bank, explains:

“The impact of an (ETF) approval is going to be big in terms of investment appetite because it’s going to be more easily regulated, more attractive and easier to invest.”

Companies like Coinbase, a leading crypto exchange, saw its stock jump by 7.5%, marking a nearly 62% rise in November. In tandem, Microstrategy, a prominent Bitcoin investor, gained 8.2%.

The firm, led by Executive Chairman Michael Saylor, has accumulated 174,530 Bitcoins since August 2020. As Bitcoin’s price surged to $42,000, the value of Microstrategy’s holdings skyrocketed to roughly $7.3 billion, translating to a profit north of $2 billion.

Read More: 9 Best Artificial Intelligence Stocks To Buy in 2023

This bullish sentiment has also extended to Bitcoin miners such as Riot Platforms, Marathon Digital, and CleanSpark, which experienced jumps between 10.3% and 18.8%, respectively. The ProShares Bitcoin Strategy ETF, which tracks bitcoin futures, rose 7.7%, signaling a potential over one-year high.

Robinhood Sees Increase in Crypto Trading Activity as it Expands to UK

Meanwhile, Robinhood, the popular financial services platform, is planning to launch in the UK. This move is part of the company’s strategy to provide access to US dollar and US equity markets to a broader audience.

Vlad Tenev, the CEO of Robinhood, noted an increased interest and trading activity in the crypto sector as Bitcoin prices rise. Tevev stated:

“I think you are starting to see retail investors wake up to certain segments of the rally. I think crypto activity, you’re seeing kind of a groundswell.”

In November, the notional trading volumes for cryptocurrencies on Robinhood Markets Inc. saw a significant increase, with trading volumes being approximately 75% higher than in October 2023. This suggests heightened activity and interest in cryptocurrency trading on the Robinhood platform during that period.

UAE Crypto Demand Sees First Crypto-Related Listing Soar 50%

In a significant development in the Middle East, Phoenix Group Plc, a cryptocurrency mining hardware retailer, soared by 50% on its Abu Dhabi debut after an IPO that raised $371 million.

This marked the first crypto-related listing in the region, indicating strong investor demand despite tightening scrutiny of the crypto industry in the United Arab Emirates.

In conclusion, the current rally among crypto stocks underscores the growing industry interest in cryptocurrencies. The potential interest rate cuts and the possible approval of Bitcoin ETFs in the US are significant catalysts.

Meanwhile, companies like Robinhood are expanding their global footprint. While regions like the Middle East are witnessing their first crypto-related listings.

As the crypto market evolves, these developments signal a maturing and increasingly mainstream industry.

Read More: Crypto vs. Stocks: Where To Invest Your Money in 2023

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The post Crypto Stocks Soar Amid Rising Industry Interest After Bitcoin Hits New Yearly Peak appeared first on BeInCrypto.

 
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