Crypto stocks are skyrocketing. The market’s pulse quickened after an assassination attempt on Donald Trump. Investors poured money into crypto firms, reacting to Bitcoin’s rise to a two-week high. Trump’s recent crypto support has been quite crazy.
He has agreed to headline the Bitcoin 2024 conference in Nashville later this month, and the organizers plan to raise $15 million for his campaign. The attempt on his life seems to have solidified his chances for winning the election.
Bitcoin’s price is up by about 6.3% in the past 24 hours, trading around $63,576 as of press time. This surge boosted the stocks of major crypto-related companies.
America’s largest crypto exchange Coinbase saw a 12% jump in its stock price, reaching $243. This has been its best trading day since February.
Bitcoin makes up 33% of Coinbase’s trading volume in the first quarter, the highest among any cryptocurrency.
Ethereum, by comparison, makes up for 13% of the volume. Bitcoin mining companies also benefited. Riot Platforms’ stock surged 16%, and Marathon Digital’s stock soared by 17%.
Bitcoin’s biggest corporate holder MicroStrategy saw its stock climb 17%. The stock has already gone up more than 150% YTD, and last week, the company announced a 10-for-1 stock split to make its shares more accessible to investors and employees.
Meanwhile, crypto traders are on edge about a possible U.S. recession, according to a new report by Coinbase. But the company still sees bullish catalysts if the economy remains stable. The report said:
“The concern is that cuts may not be bullish for markets if there’s a fear of a bigger slowdown. Retail investors will likely be reluctant to enter new stock or crypto positions if the U.S. economy falls into recession. On the other hand, if the economy is still doing relatively well, and the Fed cuts, then that could unlock more liquidity and invite more retail participation.”
Coinbase thinks fiscal expansion is highly likely regardless of who wins the presidential election. They added, “That’s a strong incentive to buy Bitcoin as an alternative to the traditional financial system, in our view.”
Coinbase also commented on the uncertain reaction of traders to the approval of Ethereum (ETH) exchange-traded funds (ETFs). Although the launch of Ethereum ETFs is considered to be a long-term bullish signal for Ethereum, the short-term response can’t be determined.
“For now, we expect the price action to remain choppy in Q3 2024, as crypto markets still lack strong narratives. For example, the market can’t decide whether potential spot ETH ETF flows will be bullish or bearish, although we think that may not necessarily be a bad thing from a positioning perspective.”
This uncertainty could leave room for surprise outperformance and offer Ether more support, even if the flows take time to come. Overall, Coinbase believes the next two months will likely bring more volatility before things start to improve in late September.
Source:cryptopolitan.com
