Crypto-related stocks began the U.S. session on Wednesday with notable gains as Bitcoin surged past $72,000 for the first time in nearly a month, reaching a price of approximately $72,600 before retracing slightly to around $71,500, still reflecting a 5% increase over the last 24 hours. This upward momentum marks a significant milestone, as it is the highest Bitcoin price since early February.
In the wake of this positive price movement, major crypto stocks experienced sharp increases. Coinbase (COIN) saw its shares jump over 12%, rising above $200 for the first time since late January. Meanwhile, MicroStrategy (MSTR), recognized as the largest corporate holder of Bitcoin, advanced nearly 9% to reach a one-month high. Other crypto companies, such as Galaxy Digital (GLXY), Robinhood (HOOD), and BitMine (BMNR), reported gains ranging from 6% to 8%. Notably, Circle (CRCL), a stablecoin issuer, increased by an additional 6%, accumulating over a 70% rise since its fourth-quarter earnings report.
The trend extended to Bitcoin mining companies, which rebounded following a selloff earlier in the week. Stocks like Bitfarms (BITF), Hive (HIVE), Hut 8 (HUT), and IREN each recorded gains between 6% and 10%.
This surge in the cryptocurrency sector comes amid a broader uptick in the U.S. equity market, with the Nasdaq and S&P 500 each rising approximately 1% early in the trading session. However, the $70,000-$72,000 range, which has tested Bitcoin’s attempts to rally over the last month, remains a critical barrier for the cryptocurrency to breach if this current uptrend is to continue.
According to Jasper De Maere, a trader at Wintermute OTC, Bitcoin’s outperformance over equity markets is notable especially considering that cryptocurrencies had significantly underperformed other asset classes in recent months. He suggested that digital assets might be benefiting from a rotation of capital as investors seek “substitute risk-assets” amid hesitance to pour funds into equities, which are currently impacted by uncertainties regarding supply chains, energy costs, and inflation.
De Maere emphasized that while the current trend presents opportunities for crypto, the market remains volatile and subject to rapid changes. He warned that should energy prices rise or inflation remain stubbornly high, it could create negative conditions for cryptocurrencies. As such, he predicts that volatility will likely persist until greater clarity emerges in the financial landscape.
