- US crypto stocks continue to rally as Bitcoin surpasses $84,000.
- The crypto market added $400 billion in value last week.
- Donald Trump’s victory continues to reinvigorate the market.
US crypto stocks surged on Monday as the cryptocurrency market heads towards its peak valuation above $3 trillion – buoyed by Bitcoin’s surge to a new high of $84,000.
The largest digital currency on the market has gained 94% this year.
Bradley Duke, head of Europe at crypto fund manager Bitwise, said DL News that Donald Trump’s electoral victory is at the origin of this surge.
“Investors view Trump’s victory as a powerful tailwind for crypto, hoping it will usher in a golden age of crypto,” Duke said.
The Bitwise executive identified investor expectations regarding pro-crypto regulations and other campaign promises made by President-elect Trump as reasons for this enthusiasm.
Inventory pumping
Coinbase’s stock price is up over 18% and up over 102% year to date.
MicroStrategy, the company with the largest Bitcoin balance sheet of over $1.8 billion, also jumped 19% on Monday. The company’s stock price is up 369% this year.
Bitcoin mining stocks also rose on Monday. Hut 8 grew 22% while Canaan grew 41%. Canaan’s rise on Monday comes after a significant negative close last Friday that saw its stock fall 14%.
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Other mining companies, including Riot and Marathon, also rallied before the bell on Monday, rising 17% and 20%, respectively.
The rise in cryptocurrency stocks comes amid a bullish advance in the cryptocurrency market, with $400 billion added to the market value of cryptocurrencies last week.
Andre Dragosch, head of research at Bitwise Europe, noted that speculation that nation states are considering building strategic Bitcoin reserves has also contributed to Bitcoin’s recent rise.
Meanwhile, institutional investors continue to invest in US Bitcoin spot exchange-traded funds.
Inflows reached $1.4 billion on Thursday – the highest daily flow ever for Bitcoin ETFs in the United States, according to SoSoValue.
While analysts say retail is still turning away from the market, some observers have pointed to onchain indicators that have signaled their return.
Data from crypto analytics platform 10x Research shows an increase in the number of short-term cryptocurrency holders for the first time since April.
The increase also corresponds to an increase in trading activity on centralized exchanges, with daily volume reaching $310 billion, according to data from CoinGecko.
Osato Avan-Nomayo is our DeFi correspondent based in Nigeria. It covers DeFi and technology. To share tips or story information, please contact him at osato@dlnews.com.
