Crypto Stocks Surge 10%+ as Bitcoin Holds 500,000+
1min read Crypto stocks experienced a significant surge on Monday, driven by a rally in digital assets and a broader risk-on sentiment in the market. This upward trend was particularly evident in companies focused on the cryptocurrency industry, which saw their share prices soar. The gains in the crypto sector were part of a broader market rally, with tech stocks also performing strongly. This positive momentum was fueled by reports that the next wave of tariffs from the U.S. President would be narrower than initially anticipated, easing concerns about an escalating trade war and its potential impact on the economy.
Strategy, formerly known as microstrategy, closed up by more than 10%, trading at $335.72 a share. The software company, which trades under the 'MSTR' ticker, is the largest corporate holder of Bitcoin. On Monday, it announced that it had surpassed more than 500,000 bitcoin in its holdings after its latest purchase. The company now holds 506,137 Bitcoin valued at $44.2 billion, according to a press release. The company has been selling stock to fund its offerings.
The largest U.S. crypto exchange, coinbase, was up 7% Monday afternoon, with a price of $203. Major public Bitcoin mining companies also rose, with cleanspark jumping over 18% to $8.79, riot platforms jumping nearly 10% to $9.69, and mara holdings rising 18% to $14.61 a share. The tech-heavy Nasdaq jumped 2.2% on Monday, reflecting a broader market rally.
Bitcoin, the largest crypto by market cap, was recently trading at about $87,350, up 2.2% over the past 24 hours. Ethereum and Solana were trading up more than 4% and 6%, respectively, over the same period. Earlier this month, the Consumer Price Index, a widely watched measure of inflation, arrived slightly lower than forecast, encouraging markets that had been fretting over the prospect of rising prices and stagnating growth.
The rally in crypto stocks and the broader tech sector suggests a positive outlook for these sectors, indicating continued growth and investor confidence. The market's response to the narrowing of tariffs and the surge in digital assets reflects a broader risk-on sentiment, with investors willing to take on more risk in pursuit of higher returns. This trend is likely to continue as long as the economic outlook remains positive and political developments continue to support market growth.
Ask Aime: What caused the surge in crypto stocks and how will it affect the market?
