Crypto-linked Stocks Surge as Bitcoin (BTC) Price Rallies 5%
Bitcoin (BTC) price is up 5% today after the world’s largest digital asset managed to snap its longest losing streak on a weekly basis.
Bitcoin price managed to close 1.5% higher last week despite a push from bears to secure another red-candle close. The bulls will now try to push the price action above the $33,000 mark, which offers an important near-term resistance.
The latest push higher from the BTC bulls has also provided a positive catalyst for the crypto-linked US stocks that are also feeling some love today. MicroStrategy leads the way by being up almost 8% while Riot Blockchain is trading over 5% higher in pre-market trading session in the US.
Coinbase is also up 5% with shares of Marathon Digital and Silvergate trading 4.6% and 3.9% higher, respectively. Block shares are up nearly 3% as the tech-heavy Nasdaq also trades higher on the improved risk sentiment.
A more positive price action comes at the right moment for crypto bulls, although the world’s youngest asset class is far from out of the woods. Bitcoin and other cryptocurrencies are still heavily correlated with the high-risk tech sector, which can be impacted by the US inflation data that is due to be released this week.
The relief rally in Bitcoin has also provided support for other digital assets to rally. Ethereum (ETH) is up 5.7% today with Solana (SOL) trading as much as 14.3% in the green.
Overall, the total cryptocurrency market cap is up 4.5% today after managing to close 0.4% higher last week.
Prior to last week, the total crypto market cap secured 8 consecutive red candles on a weekly chart. During this time period, the total market cap fell from roughly $2.15 trillion to as low as $1.082 trillion in the first half of May.