On December 4, publicly traded cryptocurrency companies surged to close the year in the green as Bitcoin hit a new yearly high, surpassing $42,000. Coinbase (COIN), the cryptocurrency exchange, closed above $141, marking a 5.5% increase for the day and an outstanding 320% increase since the beginning of the year, based on Google Finance data.
Bitcoin mining companies, Marathon Digital (MARA) and Riot Platforms (RIOT), both witnessed an over 8% increase at the day's close, boasting year-to-date gains of 337% and 345%, respectively. Galaxy Digital Holdings (GLXY), a cryptocurrency investment firm, experienced nearly a 12% surge on the day, accumulating a year-to-date rise of 155%. MicroStrategy (MSTR) reported a 6.5% increase, with its Bitcoin holdings making it the public company with the largest Bitcoin portfolio, valued over $6.6 billion, marking a 288% year-to-date surge.
Despite the mixed performance in the North American stock market on December 4, major technology stocks like Microsoft, Apple, Google, and Nvidia witnessed declines ranging from 0.95% to 2.68%.
IG Australia market analyst Tony Sycamore suggested that the surge in crypto-related stocks is predominantly due to Bitcoin’s remarkable ascent, which has climbed nearly 152% year-to-date, reaching around $42,000. Sycamore noted that investors looked to crypto stocks for exposure to cryptocurrencies before the potential approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S. The rise in Bitcoin's price has triggered increased excitement and participation across the crypto ecosystem.
Jon de Wet, head of investments at Zerocap, highlighted the potential approval of the ETF and the approaching Bitcoin halving as influential factors shaping the cryptocurrency market sentiment. De Wet described the crypto stocks as “exchange-listed proxies” providing indirect market exposure to investors. Both CMC Markets analysts, Tina Teng and de Wet, agreed that the pending spot ETF has contributed positively to Bitcoin's rise since August.
Sycamore predicted that the recent surge in excitement will attract a fresh wave of cryptocurrency investors. He anticipated that heightened interest, coupled with increased volatility and trading volume, would result in elevated revenues and profits for cryptocurrency exchanges and related businesses.
