Markets
Bitcoin Price Soars 12%, But Are Crypto Stocks Rising?
Bitcoin price surged to $65,000 after clearing liquidity at $54,000 last week, held back by selling pressure from the German government, which had a major impact on market sentiment. Massive liquidations rocked the cryptocurrency market as retail traders faced capitulation.
The swing above $60,000 and then $65,000 saw a strong bullish wave wake up altcoins. Ethereum regained strength at $3,500, Solana has surpassed $160 while Binance Coin has bid for $600.
Second CoinMarketCap data, the total cryptocurrency market cap has increased along with prices to $2.4 trillion. Sentiment has improved in the process with fear and greed rising to 58.
Cryptocurrency proxy stocks, including BTC’s largest institutional holder MicroStrategy Incorporated (MSTR) and Coinbase (COIN), have seen a surge in their respective values.
Crypto Proxy Stock Valuation in the Wake of Bitcoin Price Rally
Crypto stocks are positively correlated with Bitcoin Price. MSTR and COIN stock prices rise in tandem with BTC and the cryptocurrency market and also tend to follow corrections closely. However, since stocks are relatively less volatile than digital assets, they tend to hold their values relative to the former.
Yahoo Finance reveals that since May, MicroStrategy has surged to a peak of $1,736 from $1,015. This majestic move was followed by a clear correction to $1,202 reflecting the decline in Bitcoin price from $70,000 to $54,000 in June and July.
MicroStrategy MSTR Stock Chart | Yahoo Finance
The new trend reversal activated in Bitcoin over the weekend and this week was mirrored by MSTR stock rising to $1,668 on Tuesday. MicroStrategy is now trading at $1,594, reflecting a 4.2% decline on the day.
A similar trend can be seen with Coinbase (COIN) stock, which traded at $246 during U.S. business hours on Wednesday. The stock recently rose to $250 after falling to $207.
Coinbase COIN Stock Chart | Yahoo Finance
If Bitcoin can sustain a rally above $70,000 in July, MSTR and COIN stocks are likely to maintain their respective uptrends. Therefore, investors considering these stocks would be better off keeping an eye on BTC’s movements to avoid being caught off guard.
Bitcoin Price Rally Cools Down
A correction is taking hold after Bitcoin hit highs above $65,000. The pullback could allow for a fresh buildup before BTC settles into its final path to $70,000 later in the week.
Meanwhile, support is expected at $64,000, likely supported by a buy signal from the MACD (Moving Average Convergence Divergence) indicator.
Bitcoin Price Chart | Tradingview
Investors should take profits due to the resistance at $65,000, Bitcoin Price Prediction indicates a longer dive towards the 50-day exponential moving average (EMA) at $62,565. If it comes to that, Bitcoin could seek liquidity at $60,000 before a broader breakout.
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Frequent questions
These are stocks of publicly traded companies in the cryptocurrency sector or companies with a significant amount of BTC on their balance sheets, such as Coinbase and MicroStrategy.
Crypto proxy stocks can be purchased on traditional stock exchanges such as the Nasdaq.
Based on the recent price rally, the bulls are very strong and the uptrend could continue above $70,000. After analyzing the market, investors can buy Bitcoin. Remember to apply risk management techniques.