Cryptocurrency-exposed stocks soared on Thursday as Bitcoin smashed through another record. Bitcoin topped $23,000 per token on Thursday, having only surpassed the $20,000-milestone for the first time on Wednesday. The digital currency is currently trading at $23,153, according to a composite of prices compiled by Bloomberg.
Early Thursday stock gains included Marathon Patent Group’s rise of as much as 20 per cent, lifting shares to the highest since March 2018. Bit Digital climbed as much as 20 per cent, Riot Blockchain added 10 per cent, and MicroStrategy rose 7.8 per cent, while Silvergate Capital, which was upgraded at at KBW, rallied 15 per cent to a record.
Cryptocurrency-linked stocks in Asia had jumped following gains for the US names, after Bitcoin’s rise on Wednesday.
PayPal Holdings, which enabled customers to use cryptocurrencies in October, rose 3.2 per cent to a fresh high, and Square, which had put $50 million in Bitcoin on a crypto “empowerment bet” in October, climbed 3.4 per cent, also to a new high.
The world’s largest digital currency has more than tripled in value this year, and some observers predict more to come, arguing Bitcoin is being increasingly seen as a portfolio diversifier at a time of dollar weakness and potential inflationary pressures.
“While skepticism still surrounds cryptocurrencies, some in the investment community appear to have warmed to them”, which is driving prices higher, said Michael Hewson, chief markets analyst at CMC Markets.
On Wednesday, Scott Minerd, Guggenheim Investments’s chief investment officer, said Bitcoin’s scarcity combined with “rampant money printing” by the Federal Reserve mean the digital token should eventually climb to about $400,000.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.