The Improvement That Illuminated The Cryptocurrency Market For 14 Days – Bitcoin would be on course to match its streak of 15 consecutive days in 2013 in the green – affects everything closely related to this asset class.
Shares of cryptocurrency companies soar
Crypto stocks and ETFs are off to a start to the year few would bet on after a catastrophic end to 2022. After hitting rock bottom, if not rock bottom if we think Coinbase or Grayscale, all listed companies are exiting from water to record double-digit growth.
And precisely let’s start with Coinbase, alone exchange listed on the Nasdaq, which has suffered a thousand deaths since the cryptocurrency market highs in 2021. While Brian Armstrong, its CEO, has just announced another major tightening of its workforce, parting ways with nearly 1000 employees, to stay in the running and ensure his leadership in the United States, the price of its Coin stock is up 69% from its historic lows. fell to $31.95 on January 6thwas displayed in $54.14 at the close of trading on 17 January.
This growth was supported in particular by Ark Invest, Cathie Wood’s fund, which has acquired more than 280,000 Coin shares since Jan. 5. Note, however, that despite this strong push, COIN remains at over 84% of its all-time high.
MicroStrategy shares are up 74%.
We continue with the emblematic MicroStrategy, 132,500 BTC at the counter of its liquidity. If its co-founder Michael Saylor has never stopped proclaiming his trust in BTC, not hesitating from his position as executive president, to continue the company’s purchase policy by storing additional bitcoins in the worst case bear, this extremism did not please the MSTR share which, logically, evolves in tandem with the price of the first cryptocurrency. Then, after hitting a low of $135 on Dec. 29, the stock hits $236 today, up more than 74%.
Big Winners: Mining Companies
But the biggest winners of the current rally are the mining companies. In dire straits from the Bitcoin price crash, some have not recovered, such as Core Scientific, forcing them to sell a significant portion of their mined BTC to boost their liquidity in 2022, here they are getting their colors back. One of the industry giants, Bitfarms, reported a 150% increase in the first two weeks of January 2023, while shares of Marathon Digital Holdings soared 144%. Meanwhile, Hive Blockchain Technologies has seen its share value nearly double and its mining-related index, MVIS Global Digital Assets Mining, has risen 64% since the start of the new year.
However, in comparison, cryptocurrency-related equity products rose less. Bitcoin futures ETF pioneer in the US market, ProShares Bitcoin Strategy (BITO), posted a gain of just 31.7%, while Valkyrie Bitcoin Strategy ETF (BTFD) e the VanEck ETF (XBTF) are up 18% and 10% respectively since January 1st.
The moribund GBTC also comes to life
Finally, we will have saved for the end what is at the heart of lingering concerns in the cryptocurrency sector, the famous grayscale Bitcoin trust. Touching the abyss throughout the last year, with a discount of its product hitting all-time highs and a December prevailing in the turmoil of its parent company (Digital Currency Group), it has also found its colors. Soft colors sure, but all the same. Thereby, After hitting a low of $7.76 on Dec. 28, GBTC stock is sporting a $11.72 laugh todaya significant increase of 44%.
Like all risky assets, cryptocurrencies seem to benefit from the return of a renewed appetite from investors, including institutional ones. The latter are betting that the US Federal Reserve will ease its monetary tightening policy as inflation decelerates.
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But the optimism may be short-lived. The specter of new bankruptcies of industry giants and the prospect of regulation more deadly than adequate could very quickly darken this blue sky in January.