The share price of cryptocurrency exchange Coinbase has risen 69% from its record lows and other cryptocurrency-related stocks, including business intelligence firm MicroStrategy, have posted similar jumps with green candles since early 2023.
Coinbase's share price fell as low as $31.95 on January 6, before skyrocketing as high as $54.14 by the close of business on January 17.
The rise in stock price will likely be accompanied by a huge sigh of relief for Coinbase executives after a challenging 2022 saw it cut. 20% of your staff and choose shut down its Japanese operations. Despite the rise, COIN remains more than 84% below its all-time high.
Other cryptocurrency-related stocks, such as MicroStrategy and digital payments company Block Inc., also posted strong gains in the new year.
MicroStrategy's share price rose to nearly $236 from a low of just over $135 on December 29, up more than 74%, while Jack Dorsey's Block has seen its share price rise by a moderate but still respectable 27%, after recovering from a low of less than $59 on December 28 to more than $75.
The rally has been even more dramatic for crypto mining stocks. Bitfarms and Marathon Digital Holdings posted surges 140% and 120% respectively during the first two weeks of the year.
Crypto exchange-traded funds (ETFs) have also rallied to a lesser degree with the Valkyrie Bitcoin Miners ETF (WGMI) more than doubling in price from a low of just over $4 on Dec. 28 to over $8.
The ProShares Bitcoin Strategy ETF (BITO) jumped from over $10 on Dec. 28 to a current price of around $13, rising just under a third.
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Even Grayscale Bitcoin Trust has managed to recoup some of its 2022 losses, after rising from a low of $7.76 on Dec. 28 to a current price of $11.72, an increase of 51%.
While the escrow is designed to reflect the price of Bitcoin (BTC) often trades at a discount or premium to the value of its underlying holdings and is now at a discount of just over 36% after trading at a discount of over 45% on December 28.
Some experts believe that Bitcoin in particular has skyrocketed on the back of the positive US inflation figures released on January 12, having risen in price by more than 17% since then, but it is interesting to note that December 28 seemed to represent a market fund in many cryptocurrencies and stocks.
Total #crypto The market capitalization is back at over 1 trillion dollars! pic.twitter.com/wS4N9qjA4G
โLark Davis (@TheCryptoLark) January 17, 2023
While the recent rise in crypto-related stocks is sure to come as a huge relief to those who have invested in them, it is worth noting that many of these companies have a long way to go to return to their all-time highs, as highlighted. Per a January 10 tweet from financial advisor Genevieve Roch-Decter.
Cryptocurrency stocks over the past year:
Traveler -99.7%
Silver Gate -90.8%
Digital Marathon -83.1%
Coinbase -82.3%
HIVE Blockchain -81.3%
Microstrategy -63.9%โ Genevieve Roch-Decter, CFA (@GRDecter) January 10, 2023
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