The uptick in the crypto market drives stocks and sector ETFs higher

The upgrade that lit up the crypto market for 14 days – Bitcoin would be on track to match its 2013 streak of 15 days in a row. – affects everything closely related to this asset class.

Source: Documenting Bitcoin in I tweet

Shares of crypto companies rise

Crypto stocks and ETFs are at the start of the year that few would have bet on after a cataclysmic end to 2022. Having hit the bottom, if not the bottom if we think of Coinbase or a Grayscale, all listed companies are come out of the water to record double-digit growth.

And let’s start with Coinbase, only ExcHAnGE listed on the Nasdaq, which has suffered a thousand deaths since the peak of the crypto market in 2021. As Brian Armstrong, its CEO, has just announced another major workforce squeeze, parting ways with nearly 1,000 employeesto stay in the race and ensure its leadership in the United States, its Coin share price jumped 69% from its all-time lows. fell into $31.95 on January 6thappeared in $54.14 at the close of trading on January 17.

This growth was particularly supported by Ark Invest, Cathie Wood’s fund, which has bought more than 280,000 shares of the currency since Jan. 5. Note, however, that despite this strong push, COIN remains at more than – 84% of its all-time high.

Shares of MicroStrategy are up 74%.

We continue with emblematics MicroStrategy, 132,500 BTC in its money counter. If its co-founder Michael Saylor has never stopped declaring his faith in BTC, not hesitating from his position as executive chairman, to continue the company’s acquisition policy hoarding extra bitcoins at worst ursine, this extremism did not like the MSTR action which, logically, evolves together with the price of the first crypto. Thus, after hitting a low of $135 on December 29, stock today hits $236, up more than 74%.

The big winners: mining companies

But the biggest winners in the current rally are mining companies. In serious trouble since the Bitcoin price crash, some have not recovered as Core Scientific, forcing them to sell a significant portion of their mined BTC to increase their liquidity in 2022, here they are regaining their colors. One of the giants of the industry, Bitfarms, registered one 150% increase in the first two weeks of January 2023, while Marathon Digital Holdings stock saw a 144% increase. At the same time, Hive Blockchain Technologies has seen the value of its shares almost doubles and the mining-related index, MVIS Global Digital Assets Mining, knows a jump of 64% since the beginning of the new year.

However, in comparison, Crypto-related stock products rose less. The pioneer of Bitcoin futures ETF in the US market, ProShares Bitcoin Strategy (BITO), just showsor 31.7% increaseuntil Valkyrie Bitcoin Strategy ETF (BTFD) and VanEck ETF (XBTF) respectively boast a 18% increase AND 10% since January 1.

Even the dead GBTC comes to life

Finally we will have saved for last what is at the heart of ongoing concerns in the crypto industry, the famous Grayscale Bitcoin trust. Skimming the abyss all last year, with its product discount hitting an all-time high and December winning at riot of the parent company (Digital Currency Group), it has also regained some color. Faint colors of course, but all the same. In this way, after reaching a low price of $7.76 on December 28, GBTC stock is now worth a laughable $11.72this is a significant increase of 44%.

Like all risky assets, cryptocurrencies appear to be benefiting from the return of renewed appetite from investors, including institutional ones. The latter are betting on the fact that the US Federal Reserve will ease its monetary tightening policy with slowing inflation.

Bitcoin, Ethereum and Gold Analysis – BTC, ETH and XAU Price Monday January 16, 2023

But optimism can be short-lived. The spectrum new bankruptcies giants in the sector and the prospect of regulations that are more murderous than regulated could very quickly overshadow this blue sky in January.

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