Crypto-linked Stocks Surge as Bitcoin Tops $100,000 for First Time
The price of bitcoin crossing $100,000 on Wednesday evening has sent shockwaves through the cryptocurrency market, with crypto-linked stocks surging on Thursday. The rally is being driven by a combination of factors, including the appointment of Paul Atkins as SEC Chair and the potential for easing regulation in the industry.
MicroStrategy's Bitcoin Buying Strategy Drives Stock Price
One of the biggest winners of the day was MicroStrategy, one of the largest holders of bitcoin. The company's share price is heavily linked to its bitcoin buying strategy, which has accelerated in recent weeks. Since November 11, MicroStrategy has purchased almost $14 billion worth of bitcoin, and the stock is up more than 540% in 2024. This rapid growth has made MicroStrategy one of the most successful companies in the cryptocurrency space.
Coinbase and Robinhood Also See Significant Gains
Other crypto-linked stocks also saw significant gains on Thursday. Shares of Coinbase, a leading cryptocurrency exchange, rallied 5%, while retail brokerage Robinhood, which offers several cryptocurrencies on its platform, rose 2%. These gains are likely due to the increased visibility and acceptance of cryptocurrencies in the mainstream market.
Bitcoin Miners Also Benefit from Rally
The rally is not limited to just exchanges and brokers. Bitcoin miners also saw significant gains on Thursday, with Riot Platforms and Marathon Digital rallying 3% and 6%, respectively. This increase in price is likely due to the increased demand for bitcoin, which is driving up the revenue of mining operations.
Paul Atkins' Appointment Boosts Industry Enthusiasm
The appointment of Paul Atkins as SEC Chair has been a major factor in the rally. Atkins is a well-known crypto advocate who has been critical of the industry's regulatory approach. His appointment is seen as a positive development for the industry, and his potential policies easing regulation are expected to boost several analysts' projections for bitcoin and other cryptocurrencies.
Analysts Predict Further Gains
Several analysts have predicted further gains in the price of bitcoin. The Benchmark Company's Mark Palmer has said that bitcoin could rally to $225,000 in the next two years, while Standard Chartered has said it could hit $200,000 by the end of 2025. These predictions are based on a combination of factors, including the increasing adoption of cryptocurrencies and the potential for easing regulation.
Bitcoin's Total Gains Since Election Day
The price of bitcoin was trading at $103,444.90 on Thursday morning, bringing its total gains since Election Day to over 51%. This rapid growth is likely due to a combination of factors, including the appointment of Atkins as SEC Chair and the increasing adoption of cryptocurrencies.
Conclusion
The rally in crypto-linked stocks on Thursday is a clear indication that the industry is gaining momentum. The appointment of Paul Atkins as SEC Chair has boosted industry enthusiasm, and the potential for easing regulation is driving up demand for bitcoin and other cryptocurrencies. As analysts predict further gains in the price of bitcoin, investors are likely to take notice and jump into the market.