By
Chimamanda U. Martha
April 25th, 2024
The S&P 500 (INDEXSP:.INX) and Nasdaq Composite (INDEXNASDAQ:.IXIC) equity indexes advanced for the second consecutive day.
Bitcoin (BTC) mining stocks enjoyed significant gains on Thursday as the price of the coin hovers around $35,000, its highest level in over 17 months.
Bitcoin Mining Stocks’ Strong Performance
According to reports, US-listed mining companies such as Marathon Digital Holdings Inc (NASDAQ: MARA), Riot Blockchain Inc (NASDAQ: RIOT), and CleanSpark Inc (NASDAQ: CLSK) experienced remarkable gains of 10% to 12% during the trading day. The double-digit gains by these companies highlight the growing interest in Bitcoin mining stocks.
Caleb Franzen, founder of Cube Analytics, advised crypto traders to focus on these stocks for generating significant returns, especially if they believe a crypto and equity bull market is on the horizon.
The rally in these mining stocks was part of a broader surge in equities, with the Dow Jones Industrial Average (INDEXDJX:.DJI) posting its best day since June. The enthusiasm wasn’t limited to just Bitcoin miners, crypto-related stocks, in general, enjoyed a boost in sentiment on Wall Street.
Traders are increasingly betting that the Federal Reserve has concluded its historic interest rate hiking cycle, thereby reducing uncertainty in the market. As investors regain confidence, they are turning their attention towards the digital asset space.
The S&P 500 (INDEXSP:.INX) and Nasdaq Composite (INDEXNASDAQ:.IXIC) equity indexes advanced for the second consecutive day. This momentum was partially fueled by Federal Reserve Chair Jerome Powell’s slightly dovish remarks and the decision to leave interest rates unchanged for the second consecutive month. These decisions were made in light of signs of easing inflation and decreasing labor costs.
Furthermore, Coinbase Global Inc (NASDAQ: COIN), a leading crypto exchange, also experienced an 8.7% increase in its stock price during the trading day. However, some of these gains were trimmed after the market close when the company reported lower trading volumes for Q3. Despite this, Coinbase outperformed analyst expectations in terms of revenues and earnings.
State of the Broader Crypto Market
Bitcoin itself traded around the $35,000 mark, marking a significant increase from its lowest point earlier in the year, and is at its highest price level since May 2022. On the other hand, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, lingered around $1,800, experiencing a minor dip of nearly 2% over the past 24 hours.
The broader crypto market, as measured by the CoinDesk Market Index (CMI), declined 1.3% over the same period, showing that the market remains volatile. In terms of specific cryptocurrencies, Cardano’s native token (ADA) and the metaverse platform Decentraland’s (MANA) stood out as notable outperformers, advancing nearly 6%.
On the flip side, Chainlink (LINK), venture capital-backed blockchain Aptos’s token (APT), and liquid staking platform Lido’s governance token (LDO) faced a decline of 5% to 7%. Solana (SOL) also cooled off after a spectacular rally, with its price doubling in just over two weeks. The token dipped to $40 from a 14-month high of $46.60.
