Cryptocurrency Stocks Extend Rally as Bitcoin Tops $35,000 - BLOOMBERG
BY Bloomberg News,
(Bloomberg) -- Shares of companies linked to cryptocurrencies advanced on Tuesday, as Bitcoin briefly surpassed $35,000.
Trading platform Coinbase Global Inc. and Bitcoin holder MicroStrategy Inc. gained 6.3% and 13%, respectively. Miners Marathon Digital Holdings Inc. and Riot Platforms Inc. each gained more than 10% on the day.
As the largest digital asset based on market value strengthens to a level last seen in 2022 on optimism for the first spot Bitcoin exchange-traded fund to potentially get US approval, shares of miners and other companies exposed to the digital token are rallying. The group is advancing for a second day after Bitcoin surpassed the $31,000 level on Monday.
“We believe the crypto sector is coming upon an inflection point that will lead, in any of our scenarios, to increasing volatility in crypto-linked stocks,” Needham analyst John Todaro wrote in a note, pointing to the upcoming quadrennial event called “the Halving,” as well as a potential Bitcoin ETF as a catalyst.
Bitcoin rose 7.1% to $33,777.74 as of 4:08 p.m. New York time, after surpassing $35,000 earlier in the session. On Monday, a federal appeals court formalized a victory for Grayscale Investments LLC in its bid to create an ETF based on Bitcoin.
Read More: Bitcoin Hits $35,000 for First Time Since 2022 on ETF Optimism
Crypto-linked stocks have rallied this year, bouncing after a 2022 downturn as Bitcoin declined.
(Updates stock moves at market close.)