Bitcoin's Blowout Surge Keeps Boosting Crypto-Linked Stocks
Bitcoin's Blowout Surge Keeps Boosting Crypto-Linked Stocks
(Bloomberg) -- Stocks with exposure to cryptocurrencies are once again rallying as Bitcoin soared as much as 18% on Wednesday, topping $13,000 for the first time since January 2018.
The jump helped companies in Wednesday trading, including: MGT Capital Investments Inc., which soared as much as 55%; DPW Holdings Inc. which skyrocketed 45%; Grayscale Bitcoin Trust BTC, which rose as much as 17%; Riot Blockchain Inc., which gained 20%, Overstock.com Inc., up 21%, and Marathon Patent Group, up 20%.
Some have suggested Bitcoin is benefiting from fresh optimism as Facebook Inc. has decided to push into cryptocurrencies with its new coin, Libra. Geopolitical tension, and dropping bond yields, may also be drawing investors into alternative assets, like gold.
Primary drivers supporting bitcoin becoming a “digital version of gold” include macroeconomic factors, an increasing number of countries with negative interest rates, Federal Reserve easing and discussion of Modern Monetary Theory, known as MMT, Bloomberg Intelligence’s Mike McGlone said in a report.
He noted that technically, Bitcoin “broke above key resistance in early May on the back of record shorts with additional support from Tether getting past its troubles and Libra increasing institutional interest.”
To contact the reporter on this story: Felice Maranz in New York at fmaranz@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven Fromm
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