Cryptocurrency

Bitcoin’s Nearly $89K Peak Boosts Crypto and BTC Mining Stocks

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<p>On Monday, Bitcoin (BTC-USD) reached unprecedented levels, briefly trading just below $85,000. This remarkable surge also propelled several stocks linked to the cryptocurrency trade and contributed to a broader post-election rally, following the recent U.S. election results.</p><br />
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<h2>Coinbase and Robinhood Experience Significant Gains</h2><br />
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<p>Investor sentiment turned bullish on Monday, leading to a notable rise in the stock prices of Coinbase and other companies associated with the cryptocurrency sector. Coinbase (COIN) witnessed a remarkable increase of over 17% in its stock value on Monday, marking an impressive 70% rise over the past five trading sessions. Similarly, Robinhood (HOOD) experienced an over 8% increase on Monday and has climbed more than 38% over the last five days.</p><br />
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<p>In a related development, Robinhood's legal chief, Dan Gallagher, is reportedly under consideration for the position of SEC Chair, a potential appointment under the Trump administration. Trump's promises to the industry include establishing a crypto Presidential Advisory Council, replacing SEC Chair Gary Gensler, and developing a strategic national bitcoin reserve.</p><br />
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<h2>Impressive Gains for IBIT, MicroStrategy, and Tesla</h2><br />
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<p>BlackRock's iShares Bitcoin Trust (IBIT), the largest bitcoin exchange-traded fund (ETF), saw an impressive nearly 11% rise in early trading on Monday. MicroStrategy (MSTR), which holds nearly 280,000 bitcoins, also soared by over 18% on the same day. Recent disclosures reveal that from October 31 to November 10, MicroStrategy acquired approximately 27,200 bitcoins at an average price of $74,463. The company reported a BTC yield of 7.3% for the quarter to date, offering a net benefit of 18,410 BTC to its shareholders and achieving a year-to-date yield of 26.4%.</p><br />
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<p>Tesla (TSLA) shares have also experienced a significant boost since the election. While Tesla holds some bitcoin, its 45% surge over the past five days and a 10% increase on Monday have been largely attributed to Elon Musk's association with Trump. Notably, Musk contributed $132 million to Trump's campaign.</p><br />
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<h2>Bitcoin Mining Stocks Gain Momentum</h2><br />
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<p>Bitcoin mining stocks have continued their upward trajectory, building on last week's gains. Investors have shown heightened interest, driving pre-market gains in this sector. Noteworthy performers include Marathon Digital (MARA), CleanSpark (CLSK), and Riot Platforms (RIOT), all benefiting from the positive momentum. Bit Digital (BTBT) surged by 22.6%, while MARA Holdings (MARA) jumped by 21% early on Monday.</p><br />
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<p>In light of the market's rally, Bernstein analysts have advised investors to increase their exposure to the cryptocurrency industry promptly. They encouraged investors who have previously avoided the sector due to regulatory uncertainties to reconsider their stance, anticipating a more crypto-friendly regulatory environment under Trump, starting with a new SEC Chair. Bernstein analysts have maintained their optimistic $200,000 bitcoin price target by the end of 2025. Greg Cipolaro, the global head of research at New York Digital Investment Group, emphasized that there is no longer a valid reason for investors to shy away from bitcoin following Trump's victory.</p><br />
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<h2>The ETF Inflow Surge</h2><br />
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<p>During the election week, spot bitcoin ETFs recorded a substantial $1.63 billion in inflows, although this was partially offset by $657.9 million in outflows on Monday and Tuesday. BlackRock's iShares Bitcoin Trust ETF (IBIT) led the way with $1.25 billion in inflows. Since their introduction in January, spot bitcoin ETFs have amassed a total of $25.86 billion in inflows, counterbalanced by $20.1 billion in outflows from the Grayscale Bitcoin Trust (GBTC). Both IBIT and spot bitcoin ETFs experienced nearly a 7% rise early on Monday.</p><br />
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