- Crypto and Crypto related stocks boom since start of 2023
- Crypto is recovering from FTX fallout
- Crypto is slowly recovering but there is still long ways to go since all-time highs
The share price of cryptocurrency exchange Coinbase has surged by 69% since its all-time lows. Other crypto-related stocks, including business intelligence firm MicroStrategy, have recorded similar jumps — it’s been green candles all around since the start of 2023.
The share price of Coinbase fell as low as $31.95 on Jan. 6 before shooting up to $54.14 by the close of trading on Jan. 17.
Crypto pump, Crypto Stocks pump
The rising share price will likely be accompanied by a massive sigh of relief for Coinbase executives after a challenging 2022 saw it cut 20% of its workforce and wind down its Japanese operations. Despite the surge, COIN remains more than 84% below its all-time high.
Other crypto-related stocks, such as MicroStrategy and digital payments company Block Inc. have also posted substantial gains in the new year.
MicroStrategy’s share price has increased to nearly $236 from a low of just over $135 on Dec. 29 — representing an increase of over 74% — while Jack Dorsey’s Block has seen its share price increase by a muted but still respectable 27%, after rebounding from a low of under $59 on Dec. 28 to over $75.
The rebound has been even more dramatic for crypto mining stocks. Bitfarms and Marathon Digital Holdings recorded 140% and 120% surges, respectively, throughout the first two weeks of the year.
Crypto exchange-traded funds (ETFs) also rebounded to a lesser degree, with Valkyrie Bitcoin Miners ETF (WGMI) more than doubling its price from a low of just over $4 on Dec. 28 to over $8.
The ProShares Bitcoin Strategy ETF (BITO) jumped from over $10 on Dec. 28 to a current price of around $13 — increasing by just under a third.
Even Grayscale Bitcoin Trust has regained some of its 2022 losses after increasing from a low of $7.76 on Dec. 28 to a current price of $11.72, a 51% increase.
While the trust is designed to mirror the price of Bitcoin, it often trades at a discount or premium to the value of its underlying holdings. It is now sitting at a discount of just over 36% after changing to over a 45% discount on Dec. 28.
Some pundits believe Bitcoin, in particular, has skyrocketed on the back of the positive inflation figures from the United States released on Jan. 12 — with BTC having increased in price by over 17% since then — but it is interesting to note that Dec. 28 seemed to represent a market bottom across many cryptocurrencies and stocks.
While the recent surge in crypto-related stocks is bound to be a massive relief to those who have invested in them, it is worth noting that many of these companies have a long way to go to return to their all-time highs, as highlighted by a Jan. 10 tweet from financial adviser Genevieve Roch-Decter.