Stocks affiliated with the cryptocurrency industry experienced notable gains on Wednesday, fueled by the continuing surge in Bitcoin (BTC) and several other digital currencies.
Shares of Coinbase Global Inc. (COIN) and Marathon Digital Holdings Inc. (MARA) reached their highest levels since early last year, while Riot Platforms Inc. (RIOT) shares traded close to their 2023 highs.
The impetus for the upward movement in both stocks and cryptocurrencies came from MicroStrategy Inc. (MSTR), the largest corporate holder of Bitcoin, announcing the acquisition of 14,620 BTC for approximately $615.7 million on Wednesday. MicroStrategy’s executive chairman, Michael Saylor, shared on X (formerly Twitter) that the average price for the purchased Bitcoin was $42,110 each, revealing that the company now holds 189,150 BTC as of Tuesday. The positive news also propelled MicroStrategy shares to their 2023 high on the same day.
Two significant factors have driven the surge in crypto prices throughout the year. Firstly, there is optimism regarding the imminent approval of the first Bitcoin exchange-traded fund (ETF) by U.S. regulators, potentially granting cryptocurrencies broader access to financial markets. Secondly, there is anticipation that the Federal Reserve has concluded its aggressive interest rate hikes aimed at curbing inflation and will commence a downward trajectory in the coming year.
In 2023, the two major cryptocurrencies, Bitcoin and ether (ETH), have experienced substantial value surges, with Bitcoin witnessing an increase of over 150%, surpassing $43,000, and ether nearly doubling in value.
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