Bitcoin (BTC-USD) surged to an unprecedented high on Monday, nearing the $85,000 mark. This remarkable ascent not only underscored the cryptocurrency’s strength but also propelled a variety of stocks linked to the crypto market and the recent post-election surge following Trump’s victory.
COIN and HOOD: Impressive Stock Gains
Monday saw a significant rise in Coinbase stock and other crypto-related companies as investor sentiment turned optimistic. Coinbase (COIN) experienced a remarkable 17% increase and has soared by approximately 70% over the last five trading days. In parallel, Robinhood (HOOD) enjoyed an 8% boost on Monday, culminating in a 38% rise over the same period. Notably, Robinhood’s legal chief, Dan Gallagher, has emerged as a potential candidate for the SEC Chair position under Trump’s administration.
Key promises from Trump to the crypto industry include the establishment of a Presidential Advisory Council on cryptocurrency, the dismissal of SEC Chair Gary Gensler, and the creation of a national bitcoin reserve.
IBIT, MSTR, and TSLA on the Rise
BlackRock’s iShares Bitcoin Trust (IBIT), the largest bitcoin ETF, saw a near 11% rise in early trading on Monday. MicroStrategy (MSTR), holding a vast 280,000 bitcoins, also increased by over 18%. A recent disclosure from MicroStrategy highlighted its acquisition of approximately 27,200 bitcoins from October 31 to November 10, at an average price of $74,463, resulting in a BTC yield of 7.3% quarter-to-date and a net shareholder benefit of 18,410 BTC, with a year-to-date gain of 26.4%.
Tesla (TSLA) shares have also experienced a significant surge following Trump’s election victory. While Tesla holds some bitcoin, its 45% increase over the last five days, including a 10% rise on Monday, is largely attributed to Elon Musk’s association with Trump, who notably contributed $132 million to Trump’s campaign.
Bitcoin Mining Stocks on the Upswing
Bitcoin mining stocks witnessed a rally, building on their gains from the previous week as investor interest intensified. Marathon Digital (MARA), CleanSpark (CLSK), and Riot Platforms (RIOT) are benefiting from this positive momentum. Bit Digital (BTBT) soared by 22.6%, while MARA Holdings (MARA) rose 21% early on Monday.
Amidst this market rally, Bernstein analysts have advised investors to increase their exposure to the crypto industry promptly. They have encouraged investors, who previously refrained due to regulatory uncertainties, to adjust their perspectives in anticipation of a crypto-friendly regulatory environment under Trump, beginning with a new SEC Chair. The analysts remain confident in their prediction of a $200,000 bitcoin price target by the end of 2025. Greg Cipolaro, global head of research at New York Digital Investment Group, emphasized there is no longer a valid reason for investors to avoid bitcoin exposure following Trump’s victory.
The ETF Surge
Spot bitcoin ETFs attracted $1.63 billion in inflows during the election week, despite experiencing $657.9 million in outflows on Monday and Tuesday. BlackRock’s iShares Bitcoin Trust ETF (IBIT) was a key player, securing $1.25 billion in inflows. Since their launch in January, spot bitcoin ETFs have amassed a total of $25.86 billion in inflows, countered by $20.1 billion in outflows from the Grayscale Bitcoin Trust (GBTC). IBIT and other spot bitcoin ETFs saw a nearly 7% increase early on Monday.
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