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Bitcoin’s evolution is impacting the stock market globally, both directly and indirectly. FinTech companies and e-commerce players, leveraging blockchain technology, plan to allow payments via cryptocurrency on their platforms.
Virtual coins, once professed to be a bubble and unreal, are altering this perception and going mainstream. Bitcoin has garnered the attention of retail investors to exchange-listed companies with the massive rise in the price to US$ 60,000 per token. Bitcoin’s mainstream acceptance has disrupted the conventional digital payment space due to its smooth and secure peer-to-peer transaction capacity.
Let us look at how Canadian crypto stocks may react to the Bitcoin latest milestone:
Canadian financial companies have been closely tracking the crypto market, and a few of them have bitcoins on their balance sheets. For example, Hut 8 Mining Corp. (TSX:HUT) and Banxa Holdings Inc. (TSXV:BNXA) hold 3,012 bitcoins and 136 bitcoins in their respective inventories.
These crypto mining stocks have become Canadian crypto investors’ favorite amid the ongoing bitcoin price rally. Their one-year growth charts have been fluctuating in line with the largest virtual currency.
Hut Mining's One-Year Stock Performance Chart. (Source: EODHD/Others)
Hut 8 Mining stock has gained 194.55 per cent this year, outstripping Bitcoin that has surged by over 100 per cent year-to-date (YTD). In the last one year, the crypto miner’s share price has swelled by more than 1,308 per cent. Meanwhile, the US$ 1 trillion market-cap electronic coins have also grown as much as 975.63 per cent in one year.
Banxa Holdings’ shares have skyrocketed 2,991.83 per cent YTD, up three times as compared to Bitcoin’s price growth this year. The crypto payment platform provider’s share price is C$ 5.05.
Banxa's Stock Performance Since Its Listing (Debuted on January 7, 2021, Source: EODHD/Others)
Apart from these crypto stocks, Canadian investors may also choose to add the following blockchain stocks to their portfolio: Galaxy Digital Holdings Ltd (TSX:GLXY), Hive Blockchain Technologies Ltd. (TSXV:HIVE), and DMG Blockchain Solutions Inc. (TSXV:DMGI).
Crypto analysts have perceived that the price of Bitcoin is more volatile due to its 24/7 trading cycle. In contrast, with crypto stocks investors can start trading as per the latest bitcoin price. However, the US$ 60,000 milestone would play as a sentiment booster for the crypto-related stocks this week.
Cryptocurrency’s rising popularity has conservative investors chalking out its merits and demerits, but millennials and GenZ traders are going with the flow. The global stock market investors have been treating Bitcoin as an alternative to gold and investing in this digital asset for a better prospect.
