Cryptocurrency Shares Out-Perform Traditional Stock Market Amid Bitcoin Surge
Cryptocurrency-linked shares are currently out-performing traditional stocks. Stocks including Coinbase, CME and Hut 8 Mining Corp are leading the way with double-digit gains whilst Bitcoin is on the brink of a new all-time high.
91% gains for crypto stocks this year
This year, over two dozen global cryptocurrency stocks linked to mining, investing and trading crypto have posted over 91% gains. This group of shares out-performed the energy, technology and financial sectors of the stock market.
The price of Bitcoin continues to rise and stocks of companies that have dabbled in the world of crypto are reaping the benefits. Most of these stocks currently sit at the top of the market leader board. Craig Erlam, market analyst at a foreign-exchnage company in Oanda, says, “It remains to be seen if the ETF listing will stoke the next surge in Bitcoin prices or end up being an opportunity to take profits. Either could be the trigger for some pretty wild price action in the cryptocurrency space.”
Crypto mining companies have seen significant gains in 2021. Marathon Holdings Inc, Hut 8 Mining Corp and Bitfarms Ltd are up over 180% since the beginning of this year.
The approval of ProShares’ Bitcoin ETF has also pushed the market forward with Coinbase (COIN) posting nearly 24% gains and Hut 8 Mining Corp gaining 21% on Nasdaq. Analysts have a bullish outlook on Bitcoin as it recently touched close to it’s all-time high.
Will Bitcoin reach its all-time high?
Analysts believe that the bullish trend shown by Bitcoin indicates that it will reach a new all-time high. If the price reaches this new level, it could easily fall back down to the $58,000 support but will most likely remain above the $52,000 resistance level.