By
Godfrey Benjamin
April 29th, 2024
Multiple crypto stocks jumped in premarket following Bitcoin’s continuous rise past the $51,000 mark as ETFs receive large inflows.
Several crypto stocks climbed higher on Wednesday in response to an increase in the price of Bitcoin (BTC). The world’s largest crypto by market cap had surpassed the $51,000 mark for the first time in more than two years.
The last time Bitcoin hit $51,000 was in December 2021, when its market cap rose to $1 trillion. At the moment, CoinMarketCap data shows that BTC is trading more than $51,500, with a seven-day increase of 19.8% and 3.3% over 24 hours. The king coin’s market cap has now crossed the $1 trillion threshold again.
Crypto Stocks Enjoy Bitcoin’s Rise
Cryptocurrency stocks tied to Bitcoin rose, with Robinhood Markets Inc (NASDAQ: HOOD) gaining more than 15% in premarket trading. Robinhood’s increase came from its better-than-expected fourth-quarter revenue report. The report revealed Robinhood’s profit came to $30 million or 3 cents per share, rising considerably from the $166 million loss recorded in the same period of the year before. For revenue, Robinhood recorded a 24% rise to $471 million and $1.9 billion for the entire year. According to Robinhood, part of this came from an 8% increase in transaction-based revenue, hitting $200 million, mostly from digital assets.
Major crypto exchange Coinbase Inc (NASDAQ: COIN) jumped by more than 7%, while MicroStrategy Inc (NASDAQ: MSTR) saw an increase of more than 8%. The business intelligence company now holds about 190,000 Bitcoins. Last December, MicroStrategy Inc spent $615.7 million on 14,620 Bitcoins at an average price of $42,110. In January, co-founder and Executive Chairman Michael Saylor announced in an X post that the company spent another $37.2 million on 850 BTC.
Other gainers on the day include crypto miners Marathon Digital Holdings (NASDAQ: MARA), which climbed 13%, and Iris Energy (NASDAQ: IREN), up nearly 19%. Last month, Marathon Digital announced that it hit a production record of 1,853 Bitcoin in December. The firm also noted that it is the highest monthly production amount for any public Bitcoin mining company.
Market Remains Bullish on Bitcoin
Bitcoin is enjoying a lot of goodwill from the rise in the asset’s value and the inflows into spot ETFs. On February 13th, according to SoSoValue, $631 million entered the Bitcoin ETF market, continuing a 13-trading-day streak of positive net inflows. BlackRock’s IBIT had the largest at $493 million. Analysts are now expecting BTC’s price to hit its current all-time high of $69,000 and possibly climb higher.
According to BitMEX co-founder Arthur Hayes, Bitcoin will likely hit $70,000 by the end of 2024. Hayes, who was a bit hesitant to view Bitcoin as considerably bullish, has now changed his mind following BTC’s market performance and inflows into ETFs. Hayes now says he is “definitely bullish for the rest of the year”.
Bitcoin has carried several altcoins along as it continues to rise. For instance, Ether (ETH) has gained 17% in 7 days and about 5% in 24 hours. Among the top 10 largest cryptocurrencies by market cap, Solana (SOL) had the biggest 7-day jump, recording an increase of more than 23%.