Marathon Digital (MARA), Coinbase (COIN), MicroStrategy (MSTR), and Bitfarms (BITF) stock prices were soaring in the pre-market session on Monday.
After rising by 9.20% on Friday, MARA stock soared by over 5.7% on Monday while Coinbase jumped by 5.8%. MicroStrategy and Bitfarms rose by 8.7% and 10%, respectively.
Some of the other crypto-focused companies like CleanSpark, Riot Platforms, Iris Energy, and Core Scientific also jumped sharply on Monday.
MARA vs COIN vs MSTR vs CORZ stocks
Bitcoin price rally accelerates
The primary reason why these stocks jumped is that Bitcoin staged a strong recovery and moved into a bull market. After tumbling to a multi-month low of $53,700 earlier this month, Bitcoin moved to a bull market and jumped to over $62,000.
Bitcoin managed to pierce the important resistance point at $60,000, where it has failed to move above last week.
This rally happened after Germany concluded selling Bitcoins in its reserves. It has sold over 50,000 Bitcoins in the past few weeks, a move that has affected the coin’s price. Besides, Bitcoin is a highly illiquid asset and a small increase in supply has an impact on its price.
Therefore, with these sales done now, analysts expect that Bitcoin could continue rising in the next few weeks.
BREAKING: The German Government is now out of Bitcoin.
The German Government just sent 3846.05 BTC ($223.81M) to Flow Traders and 139Po (likely institutional deposit/OTC service).
The German Government has 0 BTC ($0.00M) remaining. pic.twitter.com/R2vfylR1b2
— Arkham (@ArkhamIntel) July 12, 2024
Bitcoin price also rose after the Donald Trump shootingin a rally in Pennsylvania. This shooting has led to high expectations that Trump would win the general election, especially if he runs against Joe Biden.
He has already attracted some high-profile endorsements after the shooting, including the likes of Elon Musk and Bill Ackman.
Trump is widely seen as the most crypto-friendly presidential candidate in the US. He has already attracted donations from the Winklevoss Twins and the founder of Kraken.
A Biden victory, on the other hand, would likely see him retain Gary Gensler as the Securities and Exchange Commission (SEC) chair. Gensler has attracted criticism from the crypto community. In a note, an analyst told FT that:
“For the markets, the complexities of the US political backdrop have been boiled down to the assumption that the weekend events will lead to an increased chance of Trump winning the November presidential election.”
Spot Ethereum ETF approval likely
Bitcoin and other cryptocurrencies also jumped as hopes that the SEC will approve a spot Ethereum ETF.
Some analysts expect that the agency will approve the funds as soon as this week. As a result, Ethereum’s pricehas moved into a bull market as it rose by 20% from its lowest point this month. That approval will be a good thing for Bitcoin and other cryptocurrencies.
Therefore, companies like MARA, COIN, MSTR, and BITF stocks have jumped because of their role in the cryptocurrency industry.
Marathon Digital, Bitfarms, and other Bitcoin mining companies benefit from robust Bitcoin prices because of their business. They mine and sell Bitcoins at a profit and also hold some of these coins in their balance sheet.
MicroStrategy has grown into the biggest Bitcoin holder in the world while Coindesk is the biggest crypto exchange in the United States. Coinbase thrives when Bitcoin and other coins are rising.
These stocks have also soared because of the recent US economic numbers, which raised the possibility of interest rate cuts by the Federal Reserve. The data showed that the headline and core inflation dropped to 3.0% and 3.20%.
Therefore, analysts expect that the Fed will cut interest rates by 0.25% as soon as in its meeting in September. Bitcoin and related stocks tend to do well when there are hopes that the Fed will cut rates.
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