Coinspeaker
Crypto Stocks in Green as Bitcoin Flirts Around ATH
In what may be a hopeful sign for crypto investors, US crypto-related stocks began the week on a positive note as they traded higher. This positive development comes as Bitcoin, the largest digital asset moved slightly around its all-time high of $73,000.
Crypto Stocks Trading Higher
According to information from a recent Coindesk report, the shares of prominent crypto trading platform Coinbase Global Inc (NASDAQ: COIN) saw an increase of 6.68% to $256.99. The exchange, which went public in 2021, has had a great year thus far. In February, it released its Q4 2023 results, which revealed that it was once again profitable.
In a similar move, stocks from renowned corporate Bitcoin holder and business intelligence firm MicroStrategy Inc (NASDAQ: MSTR) increased by 5.14% to $1,512.99 while BlackRock’s Bitcoin Exchange-Traded Fund (IBIT) gained about 6.5% in pre-market trading.
Stocks associated with Bitcoin mining firms were not left out of the rally. Notably, Hut 8 Corp (TSE: HUT) gained 5.6% CAD$12.2, while Marathon Digital Holdings Inc (NASDAQ: MARA) increased by 5.2% to $17.95. Trading on the London Stock Exchange, Argo Blockchain Plc (LON: ARB) saw a 5% increase.
The boom in the crypto market since the start of the week can be attributed to several factors driving renewed optimism among investors and heightened interest in cryptocurrencies. Despite suffering challenges due to global economic conditions in 2023, the market is showing signs of resilience and tenacity.
One notable factor that has contributed to the market’s recovery is the increased crypto adoption from institutional players following approvals of spot Bitcoin Exchange Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC). Echoing an earlier report from Coinspeaker, global crypto assets recorded inflows of $708 million last week, thus increasing total assets under management to $53 billion.
Impact of Upcoming Halving Event on Bitcoin’s Price
Currently, Bitcoin is trading at $70,779, down by 2.05% in the past 24 hours with its market cap standing at $1.3 billion. While the price drop is notable, Bitcoin’s trading volume has increased by 14.67% to $35 billion in the past 24 hours. This highlights a scenario where investors are still very interested in accumulating the coin.
The upcoming Bitcoin halving event 2024 scheduled for a later date this month is said to have injected substantial investments into the market, supporting overall sentiment. Typically, the halving cuts the amount Bitcoin miners are paid for adding blocks to the blockchain by 50%.
After the event, miners are expected to get 3.125 BTC in rewards. At the moment, miners earn 6.25 BTC for each block at the last halving event in 2020. Coinbase analysts David Duong and David Han have said in their research that the decline in miners will help reduce Bitcoin supply, setting the market for good returns in the coming quarter. There are many bullish projections for Bitcoin price post halving, a series of forecasts further igniting optimism.
