Cryptocurrency exchange Coinbase’s share price is up 69% from its all-time low, and other crypto-related stocks, including business intelligence firm MicroStrategy, have seen similar jumps with all-green candles since early 2023.
Coinbase’s share price fell as low as $31.95 on Jan. 6 before rallying to $54.14 by the close on Jan. 17.
Coinbase’s stock price for the last month. Source: Yahoo Finance
The surging stock price is likely to be accompanied by a huge sigh of relief for Coinbase executives after a challenging 2022 led to a 20% reduction in its workforce and the decision to shut down its Japanese operations. Despite the surge, COIN remains more than 84% below its all-time high.
Other crypto-related stocks such as MicroStrategy and digital payments company Block Inc. have also posted strong gains in the new year.
MicroStrategy’s stock price has surged to nearly $236 — a rise of over 74% — from a low of just over $135 on Dec. 29 — while Jack Dorsey’s block dropped its stock price by a muted but still respectable 27 % after recovering from a low of under $59 on December 28 to over $75.
Even more dramatic has been the recovery in crypto mining stocks. Bitfarms and Marathon Digital Holdings were up 140% and 120%, respectively, for the first two weeks of the year.
Crypto exchange-traded funds (ETFs) also rallied to a lesser extent, with the Valkyrie Bitcoin Miners ETF (WGMI) more than doubling its price to over $8 from a low of just over $4 on Dec. 28.
The ProShares Bitcoin Strategy ETF (BITO) jumped from above $10 on Dec. 28 to a current price of around $13, up nearly a third.
Related: Is this a bull run or a bull trap? Watch the market report live
Even Grayscale Bitcoin Trust has managed to recoup some of its 2022 losses after rallying from a low of $7.76 on Dec. 28 to a current price of $11.72, a rise of 51 % is equivalent to.
While the trust is designed to mirror the price of Bitcoin (BTC), it often trades at a discount or premium to the value of its underlying holdings and is now sitting at a discount of just over 36% after trading at a discount was trading above 45% on December 28th.
Some pundits believe Bitcoin in particular shot up on the back of positive inflation numbers from the United States released on Jan. 12 – after the price has surged over 17% since then – but it is interesting to note that Dec. 28 did appeared to represent a market bottom in many cryptocurrencies and stocks.
The total #crypto market cap is back over $1 trillion!!! pic.twitter.com/wS4N9qjA4G
— Lark Davis (@TheCryptoLark) January 17, 2023
While the recent surge in crypto-related stocks will certainly come as a major relief to those who have invested in them, it’s worth noting that many of these companies still have a long way to go to return to their all-time highs, as highlighted by a tweet dated January 10 by financial adviser Genevieve Roch-Decter.
Crypto Stocks Over the Last Year:
Travelers -99.7%
Silvergate -90.8%
Marathon Digital -83.1%
Coin Base -82.3%
HIVE Blockchain -81.3%
MicroStrategy -63.9%
— Genevieve Roch-Decter, CFA (@GRDecter) January 10, 2023
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.