Public Crypto Companies Experience Surge as Bitcoin Hits New High
As Bitcoin reached a new high for the year, public crypto companies listed in the US saw a surge in their shares. Popular crypto exchange Coinbase experienced a 7.3% increase before the market opened. Despite a decline in third-quarter trading volumes, Coinbase’s stock had a remarkable gain of nearly 62% in November. Microstrategy, a prominent bitcoin investor, also saw an 8.2% gain after acquiring bitcoins worth $593 million the previous month.
Bitcoin mining companies such as Riot Platforms, Marathon Digital, and CleanSpark also experienced impressive jumps in their shares, adding to their double-digit gains from November.
The ProShares Bitcoin Strategy ETF rose by 7.4% and appeared poised to reach a one-year high. Conversely, the ProShares Short Bitcoin Strategy ETF experienced a 7.2% decrease.
Bitcoin Surges Above $42,000 Amid ETF Optimism
Bitcoin climbed 4.0% to $41,598.0, marking its highest point since April 2022. The surge was fueled by enthusiasm surrounding potential interest rate cuts in the US and traders speculating on the imminent approval of stock market-traded Bitcoin funds.
During the trading session, bitcoin reached a peak of $42,162, capturing the attention of investors and traders alike. The approval of a bitcoin exchange-traded fund (ETF) is expected to have a significant impact on investment appetite, providing easier regulation and simplified investment processes.
Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, stated that falling yields and positive bullish sentiment for next year are contributing to bitcoin’s current rally.
Historical trends have shown that bitcoin prices tend to rally following halvings. Despite lukewarm investor sentiment earlier this year, the recent rally has positioned bitcoin for its best annual performance since 2020.
Shares of public crypto companies listed in the US experienced a surge on Monday as Bitcoin surpassed $42,000, reaching a new high for the year. Popular crypto exchange Coinbase saw a 7.3% surge before the market opened. Microstrategy, a prominent bitcoin investor that acquired bitcoins worth $593 million the previous month, also experienced an 8.2% gain. Bitcoin mining companies such as Riot Platforms, Marathon Digital, and CleanSpark saw impressive jumps of 9.7% to 12.0%, respectively, adding to their double-digit gains from November. The ProShares Bitcoin Strategy ETF rose by 7.4% and appeared poised to reach a one-year high. Conversely, the ProShares Short Bitcoin Strategy ETF experienced a 7.2% decrease.
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