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December Kickoff: Crypto Stocks Surge with Bitcoin at a Near 19-Month High

The stocks of companies involved in cryptocurrency mining and those linked to tracking Bitcoin’s performance saw an uptick on Friday. The surge in crypto stocks followed the world’s largest cryptocurrency hitting a near 19-month high amid a growing appetite for risk, as reported by Reuters.

Bitcoin, currently at $38,337 and up by 1.6%, has seen a steady climb since October. This surge is fueled by optimism surrounding the potential approval of a spot exchange-traded fund (ETF), anticipated to attract more investments into the digital asset sector.

Notably, economist Noelle Acheson highlighted the accumulating favorable factors, particularly the building expectations for a spot ETF, the resolution of uncertainties around Binance, and the looming accelerated money printing in 2024, all contributing to Bitcoin’s rally.

Shares of Bitcoin miners, whose profitability scales up with Bitcoin’s rise, such as Riot Platforms (RIOT.O), Marathon Digital (MARA.O), and TeraWulf (WULF.O), observed gains ranging from 1.7% to 4%.

J.P. Morgan revised its price targets for Cipher Mining (CIFR.O), CleanSpark (CLSK.O), Iris Energy (IREN.O), Marathon Digital, and Riot Platforms, aligning them with Bitcoin’s upward trajectory.

Ahead of Bitcoin’s upcoming “halving” event, mining companies are ramping up production. This event marks a reduction in rewards for token production by half.

Coinbase’s shares (COIN.O) climbed about 2.5%, following a remarkable 62% surge in November, surpassing Bitcoin’s 11% climb. However, despite this positive movement, the U.S. crypto exchange reported a decline in trading volume earlier in the month.

CFRA Research analyst Michael Elliott predicts that higher cryptocurrency prices will likely boost transaction volumes and revenues for Coinbase as 2024 approaches.

Despite these positive trends, Elliott warned of legal challenges and incoming regulations that may lead to volatility for the crypto stocks, reflecting the broader uncertainty faced by the crypto exchange.

The anticipation around ETF approvals has somewhat offset recent concerns stemming from the founder of the largest crypto exchange pleading guilty to breaking U.S. anti-money laundering laws.

Other notable gainers included U.S. software developer and Bitcoin investor Microstrategy (MSTR.O), up nearly 3.5%, and ProShares Bitcoin Strategy ETF (BITO.P), which added 2.1%.

News Desk

Unlock News Desk, is a group of Blockchain and Crypto enthusiastic young people, working to keep Unlock readers up to date with the industry news. Connect with the team via email: info(@)unlock-bc.com

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