Apr 8 2024: The cryptocurrency industry witnessed a strong start to the week as Bitcoin (BTC) surged past $71,000, marking its highest level since mid-March. This rally propelled shares of companies within the crypto space, with notable gains across various sectors.
Leading the charge was America’s prominent crypto exchange, Coinbase (NASDAQ:COIN), which saw a pre-market surge of 4.9%. MicroStrategy Incorporated (NASDAQ:MSTR), known for holding the largest corporate Bitcoin portfolio, recorded a significant 10% increase in its stock value. Additionally, the BlackRock bitcoin exchange-traded fund, iShares Bitcoin Trust (NASDAQ:IBIT), enjoyed a 6.5% boost.
The broader crypto market also experienced robust gains, with the total market cap reaching $2.69 trillion according to CoinMarketCap, marking a 3.96% increase over the past 24 hours.
This surge in crypto-related stocks and Bitcoin’s price can be attributed to several factors, including heightened investor enthusiasm. Inflows into crypto exchange-traded funds (ETFs) gained momentum as the second quarter kicked off on a strong note, ending a two-week outflow trend.
The crypto community is eagerly anticipating the upcoming Bitcoin halving scheduled for April 20. This event will halve the reward for mining new blocks on the Bitcoin blockchain, reducing it from 6.25 BTC to 3.125 BTC per block. Historically, such halving events have led to significant increases in Bitcoin’s price as they contribute to controlling its inflation by limiting its supply.
Among cryptocurrency miners, notable gains were observed as well. Marathon Digital (NASDAQ:MARA) saw a 6.73% increase, while Hut 8 Corp (NASDAQ:HUT), recently merged with USBTC, climbed by 7.46%. Argo Blockchain PLC ADR (NASDAQ:ARBK), listed on the London Stock Exchange, also witnessed a notable 7.35% rise in its stock price.
Moreover, the open interest in futures tracking Bitcoin has remained at record highs, surpassing $25 billion for several consecutive weeks. This indicates that traders are increasingly making leveraged bets, anticipating more price volatility in the future.
Additionally, specific tokens and projects within the Bitcoin ecosystem have seen heightened interest as traders anticipate a potential rally in BTC prices following the halving event. These investments provide an indirect way to benefit from Bitcoin’s growth without directly using futures products or leverage.
