Cryptocurrency-related stocks on U.S. exchanges experienced a surge on Monday, poised to build on their robust November gains, as Bitcoin surpassed $42,000, reaching a fresh high for the year. Source: Reuters
December kicks off strong, with Bitcoin climbing by 4.0% to $41,598.0, marking its highest point since April 2022. The surge is fueled by optimism about potential interest rate cuts in the U.S. and traders speculating on the imminent approval of U.S. stock market-traded Bitcoin funds.
“The impact of an (ETF) approval is going to be big in terms of investment appetite because it’s going to be more easily regulated, more attractive and easier to invest.”
Ipek Ozkardeskaya, Senior Market Analyst at Swissquote Bank
The current market conditions reflect a risk rally, with bitcoin benefiting from falling yields. There is also a positive bullish sentiment for the next year, anticipating the “halving” process, designed to slow the release of bitcoin. Historically, Bitcoin prices have rallied following such halving events.
Key Performances:
Coinbase (COIN.O): Jumped 7.3% before the opening bell, marking a nearly 62% increase in November despite reporting a decline in third-quarter trading volumes.
Microstrategy (MSTR.O): Gained 8.2%, following its substantial bitcoin purchases worth $593 million in the previous month.
Bitcoin Miners (Riot Platforms – RIOT.O, Marathon Digital – MARA.O, CleanSpark – CLSK.O): Experienced gains between 9.7% and 12.0%, adding to their double-digit increases in November.
ProShares Bitcoin Strategy ETF: Rose 7.4%, poised to reach an over one-year high, tracking bitcoin futures.
ProShares Short Bitcoin Strategy ETF: Fell 7.2%, enabling traders to bet on a decline in bitcoin futures.
While investor sentiment towards cryptocurrencies faced lukewarm responses earlier in the year, the recent rally has propelled Bitcoin’s value by over 150% in 2023, positioning it for its strongest annual performance since 2020.
