Bitcoin Rally Boosts Crypto Stocks to Nearly 19-Month High as December Begins
In Brief
Bitcoin saw a 1.6% gain after reaching $38,337 and the upward trajectory is attributed to the growing confidence in approval of a spot ETF.
Bitcoin ascended to a near 19-month peak, bolstering shares of crypto miners and bitcoin-related companies as optimism surrounding the potential approval of a spot exchange-traded fund (ETF) continues.
The world’s largest cryptocurrency Bitcoin, marked a 1.6% gain after reaching $38,337 on Friday. This upward trajectory since October is attributed to growing confidence that the approval of a spot ETF will unleash significant capital into the digital asset sector.
Tailwinds throughout the year, particularly in recent months were driven by rising expectations for a spot ETF, the resolution of Binance uncertainties, and the inevitability of accelerated money printing in 2024.
Shares of bitcoin miners, such as Riot Platforms (RIOT), Marathon Digital (MARA) and TeraWulf (WULF), experienced gains ranging from 1.7% to 4%, aligning with the improved profitability of miners as bitcoin prices rise.
Likewise, J.P. Morgan adjusted its price targets for Cipher Mining (CIFR), CleanSpark (CLSK), Iris Energy (IREN), Marathon Digital and Riot Platforms to reflect the surge in bitcoin value.
Mining companies are also reportedly ramping up production ahead of bitcoin’s upcoming “halving” event, during which token production rewards are halved.
Coinbase‘s shares (COIN) increased by approximately 2.5%, building on November’s 62% surge that outpaced Bitcoin’s 11% climb. Despite a decline in trading volume earlier in the month, analysts anticipate higher crypto prices leading to increased transaction volume and revenues for Coinbase in 2024.
However, potential legal challenges and new regulations can introduce volatility to the stock.
The optimism surrounding ETF approval served as a counterbalance to concerns arising from the departure of Changpeng Zhao from Binance who recently pleaded guilty to violating U.S. anti-money laundering laws.
Other gainers in the market included U.S. software developer and bitcoin investor Microstrategy (MSTR), posting a nearly 3.5% increase and ProShares Bitcoin Strategy ETF (BITO), which added 2.1%.
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About The Author
Victor is a Managing Tech Editor/Writer at Metaverse Post and covers artificial intelligence, crypto, data science, metaverse and cybersecurity within the enterprise realm. He boasts half a decade of media and AI experience working at well-known media outlets such as VentureBeat, DatatechVibe and Analytics India Magazine. Being a Media Mentor at prestigious universities including the Oxford and USC and with a Master's degree in data science and analytics, Victor is deeply committed to staying abreast of emerging trends. He offers readers the latest and most insightful narratives from the Tech and Web3 landscape.
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Victor is a Managing Tech Editor/Writer at Metaverse Post and covers artificial intelligence, crypto, data science, metaverse and cybersecurity within the enterprise realm. He boasts half a decade of media and AI experience working at well-known media outlets such as VentureBeat, DatatechVibe and Analytics India Magazine. Being a Media Mentor at prestigious universities including the Oxford and USC and with a Master's degree in data science and analytics, Victor is deeply committed to staying abreast of emerging trends. He offers readers the latest and most insightful narratives from the Tech and Web3 landscape.
