Bitcoin’s recent price surge has sent shockwaves through the cryptocurrency market, and its impact is resonating strongly in stocks that are related to Bitcoin. The BTC price surge is attributed to news of iShares Spot Bitcoin Trust being listed on The Depository Trust & Clearing Corporation (DTCC).
In a development that is drawing the attention of investors and analysts, the prices of these stocks are soaring to new multi-week highs.
Bitcoin-related stocks at multi-week highs
The surge in BTC’s price has propelled Bitcoin-related stocks to reach impressive multi-week highs.
Among the standout performers is MicroStrategy, the largest publicly traded BTC-holding company. The MicroStrategy (NASDAQ: MSTR) stock has surged by nearly 9% in response to the BTC price rally. MicroStrategy, which holds a substantial amount of BTC coins, is now inching closer to the remarkable milestone of $1 billion in unrealized gains on its BTC investment.
Coinbase, a major cryptocurrency exchange and a prominent player in the crypto market, has also benefited from this surge. Coinbase’s stock price witnessed a notable 3.42% increase, further reflecting the positive sentiment surrounding Bitcoin.
Bitcoin mining stocks shine bright
The surge in BTC price isn’t limited to BTC itself but extends to Bitcoin mining stocks as well. Bitcoin mining companies have seen significant gains, bolstered by the Bitcoin price momentum.
Riot Blockchain (RIOT), a United States-listed Bitcoin mining company, recorded an 11.69% surge, while Marathon Digital Holdings (MARA) enjoyed a remarkable 14.6% increase. Another factor contributing to this surge is the anticipation of the upcoming Bitcoin halving event, which will reduce the mining reward from 6.25 BTC to 3.125 BTC per block.
Notably, Bitcoin mining stocks have not only outperformed BTC in their daily price rallies but also in terms of year-to-date gains. Companies like Cipher Mining Inc., Riot Platforms, Northern Data AG, Hut 8 Mining Corp, Iris Energy, Bitfarms, Marathon Digital, and Hive Technologies have all registered impressive growth figures, surpassing the 100% mark this year.
Crypto exchanges witness asset outflows
As bitcoin-related stocks surge, the crypto market is seeing massive outflows of assets from major cryptocurrency exchanges; a particularly bullish sign.
Traders are moving their assets away from exchanges to secure storage, signalling their anticipation of rising prices.
Binance, one of the largest cryptocurrency exchanges, recorded a significant outflow of over $500 million in assets in the past 24 hours. This trend indicates that traders are choosing to hold their assets rather than sell, aligning with the bullish sentiment as Bitcoin surges past the $35,000 mark.
In a nutshell, BTC’s remarkable price surge is having a profound impact on the entire cryptocurrency ecosystem, from BTC-related stocks reaching new highs to asset outflows on exchanges signalling strong bullish sentiment.
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