Coinbase Global, MicroStrategy, and Marathon Digital saw their stock prices climb on Tuesday as they rode the wave of a new year’s Bitcoin surge.
Bitcoin’s value surged towards $45,500 during early trading, marking a 7% increase over the past 24 hours. This rise was driven by hopes of an impending approval of Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC). This surge propelled Bitcoin to its highest level above $45,000 since April 2022.
The positive market sentiment extended beyond Bitcoin, influencing other cryptocurrencies like Ethereum and Dogecoin, and even impacted stocks tied to digital assets.
MicroStrategy, known for its substantial Bitcoin holdings, experienced a 7% jump in premarket trading. Meanwhile, Coinbase Global, a prominent crypto broker, showed a 4% uptick, and Marathon Digital, a Bitcoin mining company, surged by 10%.
The excitement revolves around the anticipation of potential Bitcoin ETF approvals. Reports suggest the SEC might inform potential issuers this week about the green light to launch ETFs starting next week. This news, if realized, could signify a substantial inflow of billions of dollars into crypto funds, bolstering Bitcoin in the long run.
However, some, like Cathie Wood from ARK Invest, believe that the approval could trigger a “sell the news” scenario, creating pressure on Bitcoin’s price. If this materializes, these crypto-linked stocks might also experience a pullback from their early-year gains.
