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On Tuesday, the value of both major cryptocurrencies and crypto-related stocks increased in the wake of inflation data coming at 6% and plans shared by the United States government to protect citizens from further banking crises in the country. Bitcoin’s price climbed above $26,000, representing an increase of 8% over the previous twenty-four hours, while crypto stocks such as Coinbase and Microstrategy posted significant gains as well.
Crypto Stocks Gain Momentum As Bitcoin Soars
Shares of crypto-linked companies were found rallying, which eventually led to a substantial increase in overall market activity. After reaching a peak point of 11.8% growth the previous day, the shares of the leading trading platform Coinbase continued its ascent, increasing by almost 8% at $63.49 during the time of writing.
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Both Marathon Digital Holdings and Riot Platforms, two of the most renowned crypto mining companies, saw their share prices rise by more than 12%. Meanwhile, shares of Hut 8 Mining Corp. rose by a staggering 16% at $2.41 while Microstrategy recorded gains of 5% over the same time period.
Overall, the U.S. stock market witnessed a renewed bullish momentum with Dow Jones adding 314 points, the S&P500 gaining by 1.60% and the Nasdaq Composite advancing by 2.10%. Bitcoin and other prominent altcoins also witnessed a massive uptick as the global crypto market cap reached $1.13 trillion which represents a 5.67% increase over the previous day.
Light At The End Of The Tunnel?
Investors grew increasingly optimistic that other banks would not suffer the same fate as Silicon Valley and Signature, which led to a rebound in bank stock prices after they had been pummelling during Monday’s trading session. This optimism led to a rebound in the value of banking stocks, which had fallen sharply earlier in the day. On Sunday, the regulating bodies officially stated that they had devised a strategy to protect the funds deposited in the two banks.
Market gains extended beyond the recovery of the banks. The majority of S&P 500 sectors saw gains, with energy and communication services companies dominating the market. While Bitcoin’s price increase has been an important catalyst for driving up the prices of crypto stocks, the upcoming announcement from the Federal Reserve regarding the increase in interest rates also pose an important indicator for the future price movement of Bitcoin and its effect on companies that are linked to the world cryptocurrencies.
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