Key takeaways
- Shares of companies in the cryptocurrency industry took off on Wednesday as the rally in digital currencies continued.
- MicroStrategy Inc., the largest corporate holder of Bitcoin (BTC), bought an additional $615.7 million in cryptocurrency this week.
- Optimism over a potential BTC exchange-traded fund (ETF) and potential Fed interest rate cuts have fueled the rise in cryptocurrency prices this year.
Stocks related to the cryptocurrency industry advanced on Wednesday as Bitcoin (BTC) and most other digital currencies continued their recent rally.
Coinbase Global Inc. Shares (CURRENCY) and Marathon Digital Holdings Inc. (MARA) rose to their highest levels since early last year, and Riot Platforms Inc. (RIOT) shares traded near their 2023 highs.
Stocks and currencies got a boost when MicroStrategy Inc. (MSTR), the largest corporate holder of bitcoin, said it bought 14,620 BTC for around $615.7 million on Wednesday. The CEO of the company, Michael Taylor, said in a post on X (formerly Twitter) that the average price of the Bitcoins he purchased was $42,110 each. He added that MicroStrategy now has 189,150 BTC as of Tuesday. MicroStrategy shares also hit a 2023 high on Wednesday.
Two factors have been the main drivers of the rise in cryptocurrency prices this year. One is optimism that US regulators are close to approving the first Bitcoin. exchange-traded fund (ETF), giving cryptocurrencies access to the largest financial markets. The second is the expectation that the Federal Reserve has ended its aggressive interest rate hikes aimed at cooling inflation and will begin to reduce them starting next year.
So far this year, the two largest cryptocurrencies, Bitcoin and ether (ETH), have skyrocketed in value, with Bitcoin rising more than 150% above $43,000, and ether nearly doubling.
