Leading digital asset bitcoin hit $30K for the first time in nearly a year amid rampant gains in crypto stocks.
Crypto stocks are rising with the players Marathon Digital Holdings (NASDAQ: MARA) and riot stage (NASDAQ: RIOT) major gains. The pair is trading up 11% and 15%, respectively, with major coin bitcoin (B T c) is also transferring at $30K. As it stands, the price of BTC is up over 80% so far this year.
Apart from MARA and RIOT, other smaller crypto stocks also experienced significant gains on the second day of price increases. These include Stronghold Digital Mining (NASDAQ: SDIG) and Iris Energy (NASDAQ: IREN), up about 20% each.
Meanwhile, the business intelligence firm loving bitcoin Microstrategy Incorporated (NASDAQ: MARA) and crypto exchanges coinbase global (NASDAQ:COIN) reportedly gained about 7% in US premarket trading.
Galaxy’s Michael Novogratz comments on crypto stock gains and rally
The surge in bitcoin prices over the past two days also prompted a 7% price increase at Crypto Merchant Bank Galaxy Digital (TSE: GLXY). Tomorrow, CEO of Galaxy Michael Novogratz Weighed in on the latest digital currency rally and the outperformance of other asset classes. According to him, the current rally is not due to the influx of new money, but the re-emergence of long-standing crypto enthusiasts. In Novogratz’s opinion, these crypto enthusiasts are pulling back into the market after the digital asset’s sharp decline last year. As the CEO of Galaxy Digital said:
“This crypto rally has been built on the back of the crypto community. It’s not new money… it’s not pension funds and asset managers coming in. It was really retail driven.
Novogratz also pointed out that “some new people” are joining the crypto space, adding to Galaxy’s business growth. He also pointed out that the collapse of notable “competitors” like FTX funneled many established crypto investors into the rest of the establishment.
In broader terms, Novogratz described the ongoing crypto rally as a signal for traders to speculate about the Fed’s bearish fiscal policy. Put another way, the CEO pointed out that aggressive rate tightening by central banks is causing BTC to drop in 2022. Novogratz also said that the US credit crunch has also affected crypto prices.
Lastly, Novogratz attributed the latest crypto boom to aggressive moves to establish a regulatory framework in the Middle East and Far East. These include Abu Dhabi, Dubai and Hong Kong. Elsewhere, the CEO of Galaxy acknowledged the development of Ethereum (ETH) Secure as a “vibrant community” compared to other altcoins. “I don’t see a big selloff in Ethereum,” Novogratz concluded.
bitcoin on a tear
Bitcoin breaks above $30K for the first time since June 2022. BTC traded as high as $30,237 in the last 24 hours. It started the new year at $16,500, gained over 80% in 2023, and is on the rise. As CEO and Chief Legal Officer of Benxa US, Richard Micco put it:
“Bitcoin has been the best performing asset in 2023… difficult to predict given the recent volatility, but I would not be surprised if this momentum regarding BTC continues.”
Meeko also said that the prospect of de-dollarization is further accelerating bitcoin adoption. The major crypto also attracted some safe haven plays on concerns about a collapse in the banking industry.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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