The Bitcoin rally pushed cryptocurrency stocks to nearly 19-month highs as December began.
Posted: December 1, 2023 10:26 AM Updated: December 1, 2023 10:27 AM
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Bitcoin gained 1.6% after reaching $38,337, and its upward trajectory was attributed to increased confidence in the acceptance of spot ETFs.
Bitcoin rose to a nearly 19-month high as continued optimism surrounding the possible approval of a cash exchange-traded fund (ETF) bolstered shares of cryptocurrency miners and Bitcoin-related companies.
Bitcoin, the world’s largest cryptocurrency, rose 1.6% after reaching $38,337 on Friday. This upward trajectory since October is due to growing confidence that the approval of spot ETFs will attract significant capital inflows into the digital asset sector.
Tailwinds throughout the year and especially in recent months have been driven by growing expectations for spot ETFs, the resolution of Binance uncertainty, and the inevitability of accelerated money printing in 2024.
Shares of Bitcoin miners such as Riot Platforms (RIOT), Marathon Digital (MARA), and TeraWulf (WULF) fell 1.7% to 4%, consistent with improved profitability for miners as the price of Bitcoin rose. It has risen to %.
Likewise, JP Morgan adjusted price targets for Cipher Mining (CIFR), CleanSpark (CLSK), Iris Energy (IREN), Marathon Digital, and Riot Platforms to reflect the surge in Bitcoin’s value.
Mining companies are also reportedly ramping up production ahead of Bitcoin’s “halving” event, when token production rewards will be halved.
Shares of Coinbase (COIN) are up about 2.5%, building on a 62% surge in November, outpacing Bitcoin’s 11% rise. Despite a drop in trading volume earlier this month, analysts expect cryptocurrency prices to rise, leading to increased trading volume and revenue for Coinbase in 2024.
However, potential legal issues and new regulations could cause volatility in the stock.
The optimism surrounding the ETF’s approval served as a counterbalance to concerns over 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 American software developer and Bitcoin investor Microstrategy (MSTR), up nearly 3.5%, and ProShares Bitcoin Strategy ETF (BITO), up 2.1%.
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Victor is the Managing Technology Editor/Writer at Metaverse Post and covers artificial intelligence, cryptography, data science, metaverse, and cybersecurity within the enterprise space. He boasts of five years of media and AI experience working at renowned media outlets such as VentureBeat, DatatechVibe, and Analytics India Magazine. Having worked as a media mentor at prestigious universities such as Oxford and USC, and holding a Master’s degree in Data Science and Analytics, Victor is committed to keeping up with new trends. He provides readers with the latest and most insightful stories from the world of technology and Web3.
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victor day
Victor is the Managing Technology Editor/Writer at Metaverse Post and covers artificial intelligence, cryptography, data science, metaverse, and cybersecurity within the enterprise space. He boasts of five years of media and AI experience working at renowned media outlets such as VentureBeat, DatatechVibe, and Analytics India Magazine. Having worked as a media mentor at prestigious universities such as Oxford and USC, and holding a Master’s degree in Data Science and Analytics, Victor is committed to keeping up with new trends. He provides readers with the latest and most insightful stories from the world of technology and Web3.