Crypto-related stocks, ETFs and tokens have all surged in price so far in 2023 despite experts expecting the Federal Reserve to continue hiking interest rates.
The share price of cryptocurrency exchange Coinbase has surged by 69% since its all time lows and other crypto-related stocks including business intelligence firm MicroStrategy have recorded similar jumps with 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.
The rising share price will likely be accompanied by a huge sigh of relief for Coinbase executives after a challenging 2022 saw it cut 20% of its workforce and decide to 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 strong 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 surges of 140% and 120% 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.
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Even Grayscale Bitcoin Trust has managed to regain 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 (BTC) it often trades at a discount or premium to the value of its underlying holdings and is now sitting at a discount of just over 36% after having traded at 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 — 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.
Total #crypto market cap is back over 1 trillion dollars!!! pic.twitter.com/wS4N9qjA4G
— Lark Davis (@TheCryptoLark) January 17, 2023
While the recent surge in crypto-related stocks is bound to be a huge 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 thier all-time highs, as highlighted by a Jan. 10 tweet from financial advisor Genevieve Roch-Decter.
Crypto stocks over the last year:
— Genevieve Roch-Decter, CFA (@GRDecter) January 10, 2023
Voyager -99.7%
Silvergate -90.8%
Marathon Digital -83.1%
Coinbase -82.3%
HIVE Blockchain -81.3%
MicroStrategy -63.9%
