Image Source: Adobe
Shares of public crypto companies listed in the US experienced a surge on Monday as Bitcoin (BTC) surpassed $42,000, reaching a new high for the year.
Popular crypto exchange Coinbase saw a 7.3% surge before the market opened.
Despite reporting a decline in third-quarter trading volumes, the stock enjoyed a remarkable increase of nearly 62% in November.
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, which tracks bitcoin futures, rose by 7.4% and appeared poised to reach a one-year high.
Conversely, the ProShares Short Bitcoin Strategy ETF, which allows traders to bet on a decline in bitcoin futures, experienced a 7.2% decrease.
Bitcoin Surges Above $42,000 Amid ETF Optimism
Bitcoin, the largest cryptocurrency in the world, 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, as it would provide easier regulation, increased appeal, and simplified investment processes, according to Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.
“What we have right now is a risk rally, and bitcoin is also benefiting big time by falling yields,” Ozkardeskaya said.
“There is also this positive bullish sentiment into next year because it is going to be the year of halving.”
Historical trends have shown that bitcoin prices tend to rally following halvings.
Earlier this year, investor sentiment toward cryptocurrencies and related assets was lukewarm due to high-profile collapses in 2022, leading to significant outflows from the sector.
However, the recent rally has propelled bitcoin’s value up by over 150% in 2023, positioning it for its best annual performance since 2020.
The post Coinbase, Microstrategy Shares Surge as Bitcoin Resumes Rally appeared first on Cryptonews.