quick take
Since the Bitcoin ETF was approved on January 11, the digital asset’s price performance has shown an unpredictable pattern, peaking near $49,000 and then falling below $40,000. The current Bitcoin price is around $48,000. This volatile behavior extends to cryptocurrency stocks and Bitcoin ETFs, which have shown mixed performance.
Bitcoin-related mining stocks such as Iris Energy and Marathon Digital Holdings recorded double-digit declines of 11% and 12%, respectively. But not all stocks mimic this downward trajectory. For example, shares of CleanSpark and MicroStrategy soared 31% and 11%, respectively. Meanwhile, Coinbase suffered a 6% decline and is scheduled to release its fourth quarter 2023 earnings report on February 15th.
Due to Bitcoin’s slight decline since the ETF’s approval, the Bitcoin ETF has fallen about 3%, while GBTC has remained relatively flat. According to YCharts, GBTC is currently trading at a small premium to net asset value (NAV) of 0.02%. Nonetheless, Bitcoin’s recent resurgence above $48,000 has injected optimism into pre-market markets, with many ETFs and cryptocurrency stocks rising.
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