Coinbase & Other Crypto Stocks Surge As Bitcoin Tops $51K, Rally To Sustain?

The crypto companies listed on the U.S. stock market, including Coinbase, saw substantial gains between 7% and 12% pre-market on Wednesday. The rally was propelled by Bitcoin (BTC) surging past the $1 trillion market value milestone for the first time in over two years amidst a more positive investor sentiment.

Coinbase, Riot, Bitfarms Stocks Surge

Shares of crypto exchange Coinbase (NASDAQ: COIN) surged approximately 7% pre-market. The COIN stock was valued at $150.06, gaining 6.89% (9.67 points) at the time of writing on Wednesday. The surge comes ahead of Coinbase’s earnings on Thursday. Earlier, the Coinbase stock closed 4.70% lower at $140.39 on Tuesday.

Whilst, mining companies Riot Platforms (NASDAQ: RIOT) and Bitfarms (NASDAQ: BTF) witnessed gains of nearly 10% and 12%, respectively. The RIOT stock was up by 9.59% to $16.92 at press time. On Tuesday, the stock slipped 3.02% in value and closed at $15.44.

Moreover, the BITF stock noted the highest uptick among the three crypto firms mentioned. The Bitfarms stock soared 11.63% to $3.36. Therefore, it erased the losses incurred after slumping 1.95% on Tuesday. Furthermore, the expected opening price for all three crypto stocks is expected to be in the green today.

On the other hand, Bitcoin’s market value surpassed $1 trillion for the first time since November 2021. Currently valued at $1.08 trillion, it now exceeds the market value of JPMorgan Chase (NYSE: JPM), the largest U.S. bank, by more than double, and is approaching Meta Platforms’ $1.17 trillion.

Also Read: Breaking: Bitcoin Tops $51K With Ethereum Surpassing $2.7K, Here’s Why

Bitcoin Tops $51,000 Despite Poor CPI Report

Bitcoin’s upward trajectory has been steady, particularly following the recent approval by the U.S. securities regulator of the newly launched Spot Bitcoin ETFs last month. The introduction of ETFs has been hailed as a pivotal moment for the industry, which attracted the attention of retail investors as it enables investors to gain exposure to Bitcoin without direct ownership of the asset.

The 11 Spot Bitcoin ETFs clocked a total net inflow of $4 billion to date. Moreover, on Tuesday, these ETFs recorded the highest single-day net inflow of $631 million, which could have been a catalyst in propelling the Bitcoin price up. According to a Reuters report, Bernstein analyst Gautam Chhugani expressed optimism, stating, “We believe Bitcoin’s brightest days lie ahead. The ETF introduction has instilled a sense of legitimacy, previously absent in the crypto sector.”

The analyst added, “We anticipate a surge in capital allocation from these newfound Bitcoin enthusiasts in the days ahead, potentially benefiting Bitcoin ETFs or Bitcoin miners.” At press time, the Bitcoin price gained 4.21% to $51,734.07 with a market cap of $1.01 trillion. Earlier, on Tuesday, Bitcoin and the entire crypto market were hit by a bearish trend when the U.S. CPI reports missed estimates.

According to Coinglass data, no major long liquidations were noted for Bitcoin. Nearly $21 million long liquidations were registered while $74.25 million short liquidations were recorded. The liquidation amount is fairly lower as traders are betting on longs to profit higher in the long run.

Also Read: Bitcoin ETFs Hit $4 Bln Net Inflows, Will Impact On BTC Price Continue?