On Thursday, Cryptocurrency-related stocks demonstrated outstanding performance, surpassing the broader market.
In the fading days of 2024, cryptocurrency-related stocks witnessed a prosperous day on the market, exceptionally for Thursday. Despite some notable exceptions, lingering hope for a crypto-friendly administration took charge, strengthening the stock prices. Moreover, the news of a prominent critic of the sector resigning from his post served as an additional boost.
Two distinct crypto-dependent securities ended the day on a positive note. Mara Holdings (MARA -2.96%), a mining enterprise, saw a surge of nearly 7%, while the iShares Ethereum Trust ETF (ETHA 1.20%) recorded a 9% rise. On the downside, MicroStrategy, an investment vehicle for Bitcoin, experienced a decline as MicroStrategy (MSTR -4.67%). Although the market continued to be swayed by the persistent appeal for Bitcoin, the leading and most influential cryptocurrency, MicroStrategy encountered a particular reason for its reduction.
The Bitcoin surge
Excluding MicroStrategy, the remaining stocks continued to gain momentum from the sustained and robust appetite for Bitcoin. Breaking another record during the day, Bitcoin marked yet another all-time high, with a brief trade surpassing $99,000. With the $100,000 level within reach, it's safe to say that Bitcoin will breach this barrier soon, possibly very soon.
Ethereum, a versatile coin, followed suit, albeit at a slower pace, generally complementing Bitcoin's trajectory. In late-afternoon transactions, Ethereum ensured a steady ascent of 8%, thereby inadvertently influencing the iShares Ethereum Trust ETF's similar rise.
delenking on specific corporate updates, Mara Holdings celebrated the launch of a successful convertible senior notes issue, which earned them a net income of $980 million from the $1 billion private placement. As an added advantage, the notes offered a 0% interest rate, benefiting Mara Holdings significantly.
MicroStrategy, too, launched convertible senior notes, adding to its financial portfolio. However, following a substantial increase in the company's stock price early Thursday, MicroStrategy became the focus of a critical research note issued by short-seller Citron Research. Citron Research described the stock's price as "overheated" on their Twitter account.
"Now, with Bitcoin investing simpler than ever ... MicroStrategy's volume has deviated significantly from Bitcoin's fundamental value," added Citron Research. Given this adverse sentiment, investors appeared to take notice.
A farewell to Gary
Meanwhile, in Washington D.C., Gary Gensler, the chair of the Securities and Exchange Commission (SEC), announced his resignation, effective on Inauguration Day (Jan. 20). At times, Gensler served as a formidable adversary to the crypto world, expressing doubt about the widespread use of cryptocurrencies like Ethereum, describing its likelihood as "unlikely" against traditional currencies. Many in the crypto community, undoubtedly, will rejoice at his departure from his regulatory post.
In light of Gary Gensler's upcoming departure from his position as SEC chair, there might be anticipation among cryptocurrency investors for potential regulation changes that could favor the sector. In the world of finance, this could potentially lead to increased investing opportunities in cryptocurrencies. Furthermore, the surge in Bitcoin's price, breaking new records and approaching the $100,000 mark, has been a significant attraction for investors looking into the realm of cryptocurrency and digital finance.
