The start of the week has brought positive momentum for stocks associated with the cryptocurrency market, including Coinbase, MicroStrategy, and Tesla, as Bitcoin surged to $72,000 in anticipation of the highly awaited Bitcoin “halving” event.
Bitcoin, the flagship cryptocurrency, has been on a rollercoaster ride of price fluctuations and continuous outflows of funds from spot Bitcoin ETFs. However, it now seems poised for a significant upward movement, standing just 2.7% below its all-time high of $73,737 reached in March.
Cryptocurrency enthusiasts are eagerly anticipating the Bitcoin halving event, which is just around the corner. This event, occurring approximately every four years, halves the reward for Bitcoin miners, serving as a mechanism to regulate Bitcoin production and mitigate inflationary pressures.
In a significant development, Coinbase, the publicly traded cryptocurrency exchange, emerged victorious in a legal battle concerning secondary crypto sales. The U.S. Court of Appeals ruled in favor of Coinbase, affirming that secondary sales of cryptocurrencies on the platform do not violate the Securities Exchange Act. This ruling not only marks a win for Coinbase but also bodes well for the broader crypto industry, which has grappled with regulatory uncertainties.
Coinbase stock witnessed a notable surge of 5.3% in Monday morning trading, reaching $253 per share.
MicroStrategy, a prominent advocate for Bitcoin, experienced heightened investor interest following an upgrade in its price target by Benchmark analyst Mark Palmer. The software company, renowned for its substantial holdings of Bitcoin valued at $4.6 billion, is poised to capitalize on the upcoming Bitcoin halving event.
MicroStrategy stock soared by an impressive 9.5% in Monday morning trading, reaching $1,575 per share.
Despite facing challenges in the early months of 2024, Tesla, under the leadership of CEO Elon Musk, is showing signs of recovery. The electric vehicle manufacturer, which also holds a significant amount of Bitcoin, witnessed a 4.5% increase in its stock price during Monday morning trading, reaching $172 per share. Musk recently teased the unveiling of a Tesla robotaxi scheduled for August, injecting optimism into the company’s outlook.
