It's another day of success for Bitcoin (BTC-USD) and many people out there thought they might never hear those words in a sentence like that again. But Bitcoin has risen again and recently topped $57,000 before declining slightly in Tuesday morning's trading session. The move also boosted several Bitcoin stocks; both Marathon Digital Holdings (NASDAQ:MARA) and HIVE Blockchain (NASDAQ:HIVE) rose marginally, while Coinbase (NASDAQ:COIN) rose by almost 3%. The clear winner was Microstrategy (NASDAQ:MSTR), which rose over 10% in the session. Riot Platforms (NASDAQ:RIOT) slipped due to the news and fell by over 4% at times.
The recent increase is directly related to the upcoming halving, where the value of each completed block of equations will decrease by half. This, in turn, will reduce the amount of new supply entering the Bitcoin ecosystem until eventually all the Bitcoins that can be found are found and only the existing supply remains. This move, in turn, brings us closer to record highs, and it is entirely possible that the market will see this as a challenge and push it even higher. That is the assessment of LMAX Group market strategist Joel Kruger. There is still a long way to go before the record of $68,982.20 is reached, but it seems more possible every day.
The rise of Bitcoin is driving several others
Bitcoin's gains alone would be good news for many investors, but as we've already seen, this move leads to many more gains across the market. According to some estimates, Coinbase is currently above its buy point. And we've all seen the impact Bitcoin's recent hike has had on Microstrategy, a company so well-known for its Bitcoin holdings that its stock price often fluctuates in line with the cryptocurrency. In addition, Bitcoin ETFs are also seeing increasing sales; While real Bitcoin is likely too expensive for many investors, owning stocks linked to Bitcoin is often much more accessible.
Which Bitcoin stocks are a good buy right now?
As far as Wall Street is concerned, MARA stock is currently the laggard in this space. This Hold rating carries 26.39% downside risk thanks to its average price target of $21.67 per share. Meanwhile, the frontrunner is HIVE stock, as this moderate buy comes with an average price target of $6.17 per share, representing an upside potential of 43.32%.
Disclosure
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.