Connect with us

Hi, what are you looking for?

Crypto

Crypto stocks set to start December on high note as bitcoin hits near 19-month high

Representations of cryptocurrency Bitcoin are placed on a PC motherboard, in this illustration taken June 16, 2023. REUTERS/Dado Ruvic/Illustration

On Friday, shares of cryptocurrency miners and firms that track Bitcoin increased as the world’s largest cryptocurrency reached a 19-month high. This was attributed to an increase in investors’ willingness to take risks.

Bitcoin, now trading at $38,337, has been on an upward trend since October due to the anticipation that the possibility of a spot exchange-traded fund being approved would likely increase the amount of capital investments in the digital asset industry.

“Tailwinds have been gathering strength all year, especially in recent months,” said Noelle Acheson, an economist who focuses on cryptocurrency, about the increase in Bitcoin. “Spot ETF expectations have been building, the Binance uncertainty has been resolved, and 2024’s accelerated money printing becomes more inevitable.”

Bitcoin miners, such as Riot Platforms (RIOT.O), Marathon Digital (MARA.O), and TeraWulf (WULF.O), saw their share prices increase by between 1.7% and 4%. This is because the profitability of bitcoin miners rises when the price increases.

The increase in the value of bitcoin prompted J.P. Morgan to enhance its price expectations for many cryptocurrency companies, including Cipher Mining (CIFR.O), CleanSpark (CLSK.O), Iris Energy (IREN.O), Marathon Digital, and Riot Platforms.

Mining businesses are also expanding output in preparation for the “halving” event in Bitcoin the following year. This event will result in the benefits of creating the tokens being slashed in half.

Following the 62% increase in November, which exceeded Bitcoin’s 11% climb, the shares of Coinbase (COIN.O) increased by around 2.5%. This occurred even though the cryptocurrency exchange in the United States recorded a decrease in trading volume earlier in the month.

As we go into the year 2024, higher cryptocurrency values should increase the number of transactions and the income generated by those transactions for Coinbase, according to Michael Elliott, an analyst at CFRA Research.

Nevertheless, Elliott emphasized that the cryptocurrency exchange is confronted with both legal challenges and new laws, which are expected to take some time to play out and will continue to result in volatility for the company.

As a result of Changpeng Zhao, the creator of the largest cryptocurrency exchange in the world, resigning from his position and pleading guilty to violating anti-money laundering rules in the United States, the ETF approval bets have helped address the most recent issues.

Microstrategy (MSTR.O), a software developer and bitcoin investor based in the United States, advanced by roughly 3.5%, and ProShares Bitcoin Strategy ETF (BITO.P), which gained 2.1%, were among the other companies that saw gains.

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

The future of technological innovation is here. Be the first to discover the latest advancements, insights, and reviews. Join us in shaping the future.
SUBSCRIBE

You May Also Like

AI

Nvidia has expanded its reach in China’s EV sector. Four Chinese electric car makers will utilize Nvidia’s technology to power autonomous driving systems, demonstrating...

Uncategorized

Two nonfiction writers filed a lawsuit against OpenAI and its financial supporter Microsoft (MSFT.O) on Friday in Manhattan federal court. They claim that the...

TECH

In a federal court case in California, shareholders sued Netflix (NFLX.O.), alleging that the streaming entertainment business concealed how much account-sharing was impeding its...

Crypto

A bankruptcy judge in the United States has given the go-ahead for Celsius Network, a cryptocurrency lender, to switch its focus to Bitcoin mining....