Shares in crypto companies like Coinbase, MicroStrategy, and Riot Platforms are rallying after investors began swarming around the crypto market. Bitcoin prices have rallied over the weekend of an assassination attempt against Republican nominee Donald Trump, as investors bet Trump now has a better November election bid. Trump has been growing more bullish on crypto over the last few months, announcing just this last week that he would keynote the Bitcoin 2024 conference in Nashville. Institutional demand partially pushed the rally, tapping into regulatory winds pushing for more precise rules. Analysts suggest this uptrend means trust in the crypto markets is back, offering long-term growth for owners of crypto-related stocks.
As of early Monday afternoon, Bitcoin was trading at around $63,500, up about 6% over the past day. The largest U.S. centralized digital asset exchange, Coinbase, rose 12% to $243.27 for its best day since February, with shares on track in the near term, too far above their 50-day moving average. In the first quarter, Bitcoin was 33% of the trading volume on the platform, which is huge and way more significant than any other cryptocurrency. In comparison, Ethereum accounted for 13% of the volume.
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Further, Riot Platforms, a large-scale Bitcoin mining firm, jumped 16%, and Marathon Digital Solutions surged 17%. Since an increase in the value of their operations is likely to equal profits, Bitcoin tends to share a positive sentiment, which should cause miners to top as it generally benefits from a rising price. Shares of MicroStrategy, the largest corporate holder of bitcoins, rose 17 % on Monday. The stock is up over 150% so far this year. MicroStrategy announced a 10-for-1 stock split as the company sought to make its shares more affordable for investors and employees in MicroStrategy.
Institutional interest and potential Trump victory fuel crypto stocks
Rising institutional interest has been the key driver behind the recent rally in Bitcoin. After all, the recovery trend signals a return of confidence to the sector and could still mean higher profits for companies dependent on cryptos regarding long-term investments. However, if Trump wins and takes a stab at passing pro-crypto legislation, we may witness levels of growth in the crypto space never before imagined. It could lead to a more favorable regulatory environment, greater public acceptance, and massive capital inflow.
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According to PredictIt, a political betting site, bets were made on the possible winning candidate, with Trump-related contracts making $0.67 for every dollar spent, compared to $0.33 for Joe Biden before the weekend. By Monday morning, the odds of Trump winning a second term in November rose to 67% from 60%.
