Despite experts expecting the Federal Reserve to continue raising interest rates, the price of crypto-related equities, ETFs, and tokens has risen so far in 2023.
Since the beginning of 2023, the share price of cryptocurrency exchange Coinbase has increased by 69% from its all-time lows, and other crypto-related stocks, such as business intelligence firm MicroStrategy, have had similar gains with green candles all around.
Coinbase’s stock price dipped as low as $31.95 on January 6, before rising to $54.14 at the conclusion of trade on January 17.
The soaring share price will almost certainly be accompanied by a great sigh of relief for Coinbase management after a difficult 2022 that saw it lay off 20% of its workers and close its Japanese operations. Despite the increase, COIN is still more than 84% lower than its all-time high.
Other cryptocurrency-related stocks, including as MicroStrategy and digital payments provider Block Inc., have also seen significant rises in the new year.
MicroStrategy’s share price has climbed to nearly $236 from a low of just over $135 on December 29 — a 74% increase — while Jack Dorsey’s Block’s share price has increased by a modest but still impressive 27% from a low of under $59 on December 28 to over $75.
The recovery in crypto mining equities has been much more remarkable. Bitfarms and Marathon Digital Holdings had 140% and 120% increases in the first two weeks of the year, respectively.
Crypto exchange-traded funds (ETFs) have also recovered to a lesser extent, with the Valkyrie Bitcoin Miners ETF (WGMI) more than doubling its price from a low of little over $4 on December 28 to more than $8.
The ProShares Bitcoin Strategy ETF (BITO) increased by over a third from more than $10 on December 28 to around $13 today.
Even Grayscale Bitcoin Trust has managed to reclaim some of its 2022 losses, after jumping from a low of $7.76 on Dec. 28 to a current price of $11.72, a 51% increase.
While the trust is intended to replicate the price of Bitcoin, it frequently trades at a discount or premium to the value of its underlying holdings, and it is now trading at a discount of little over 36% after trading at a discount of more than 45% on December 28.
Some analysts believe Bitcoin, in particular, has skyrocketed as a result of the positive inflation figures released by the United States on Jan. 12 — it has increased in price by more than 17% since then — but it is worth noting that Dec. 28 appeared to represent a market bottom across many cryptocurrencies and stocks.
While the recent surge in crypto-related stocks is bound to be a huge relief for those who have invested in them, it is worth noting that many of these companies still have a long way to go before returning to their all-time highs, as financial advisor Genevieve Roch-Decter highlighted in a Jan. 10 tweet.
