Marathon, Bit Digital Rise as Bitcoin Jumps Past $48,000
Cryptocurrency stocks got a much-needed boost to begin the month after Bitcoin surged back above $48,000 for its largest increase since July.
Marathon Digital Holdings Inc., Bit Digital Inc. and MicroStrategy Inc. all climbed by more than 5% on Friday, following Bitcoin higher as the digital currency rallied for a second day with a jump that reached as much as 11%. Meanwhile, Riot Blockchain Inc., and Coinbase Global Inc. each saw their shares gain by 1.6%.
While Bitcoin managed to return about 26% during the third quarter, it was a different story for many of the stocks exposed to the world’s largest digital asset. A brutal 31% plunge by Riot Blockchain in September sent the firm spiraling to its worst quarterly performance since 2019.
It was a similar result for Coinbase Global Inc., which saw its stock tumble more than 12% in September after China’s ban on all crypto-related transactions soured investor sentiment. The cryptocurrency exchange is down about 8% since its direct listing in April.
Still, crypto-bulls could find some reprieve in remarks from U.S. regulators. At a Congressional hearing on Thursday, Federal Reserve Chair Jerome Powell said he had “no intention” of banning cryptocurrencies.
©2021 Bloomberg L.P.