Related Stocks Rise Along With Bitcoin’s Strong Trend In The Last Month ↑ 52% of MSTR ↑ 34% of Robinhood ↑ SC “Possible to surpass $120,000 in Bitcoin in Q2”
As bitcoin prices have risen more than 30% in the past month to surpass the $100,000 mark, coin-related stocks have been strong in the New York Stock Exchange.
Bitcoin recorded $104,155 as of 2 p.m. on the 11th, up 1% from the previous day.
U.S. President Donald Trump seems to have risen as he said on the 10th (local time) that “there were many agreements” in the first trade negotiations between China in Geneva, Switzerland.
Thanks to the rise of Bitcoin, major stocks such as Coinbase, Robinhood, Mara Holdings, Hut 8 Mining, and Strategy are also on the rise side by side.
The inflow of $5.3 billion into spot ETFs in the U.S. over the past three weeks also contributed to the rise in bitcoin prices.
Investment bank Standard Chartered (SC) presented an optimistic outlook that Bitcoin is likely to surpass $120,000 in the second quarter of this year.
Virtual currency trading platform companies were the first to react. Nasdaq-listed Coinbase has risen 17.51% over the past month.
Coinbase is the largest cryptocurrency exchange in the U.S., and commission profits surge as major coins such as Bitcoin increase.
In the first quarter of this year, sales of the trading business alone, which was announced on the 8th (local time), amounted to $1.26 billion, accounting for more than 60% of the total.
However, it closed at $199.32 on the 9th (local time), down 3.48% from the previous day, as first-quarter sales fell to $2 billion, short of Wall Street estimates ($2.12 billion).
Recently, the company has been diversifying its trading products with the acquisition of Deribit, a derivatives exchange.
Robinhood was also strong, rising 34.9% in the past month.
Robinhood reported first-quarter earnings on the 1st (local time) that exceeded market expectations. It posted $924 billion in sales, up more than 50% year-on-year.
Some on Wall Street believe Robinhood’s stock price will exceed $100. Bernstein, a U.S. investment bank, raised its target price for Robinhood to $105 from $51 in February. However, intensifying competition for fees and regulatory uncertainty are considered burdensome factors.
Bitcoin mining companies Mara Holdings and Hut 8 Mining also rose 34.24% and 18.41%, respectively, in the past month.
These companies are considered direct beneficiaries of the rise in Bitcoin prices. However, rising difficulty in mining, rising electricity prices, and regulations in each country are factors that increase performance volatility.
Strategy, led by Chairman Michael Saylor, has also succeeded in rebounding in stock prices, rising 52.76% in the past month.
The company has the largest number of 555,450 Bitcoin in the world.
It is a structure in which the value of assets skyrockets every time the price of Bitcoin rises, but on the contrary, it is a weakness that if the price falls, it can put a burden on the financial soundness.
The prevailing view is that the price of Bitcoin, which determines the stock price of coin-related companies, depends on tariff negotiations.
“The optimistic outlook for U.S.-China tariff negotiations is easing trade tensions, moving funds back to risky assets such as virtual currencies,” said Jeff May, COO of the virtual currency exchange BTSE.
On the other hand, CoinDesk, a coin-specialized media, predicted, “If the U.S.-China trade negotiations reach a deadlock or there are signs of increasing tensions, the current upward trend may be dampened.”
