Bitcoin Price Rises Past $30,000; MicroStrategy BTC Bet returns to profitability
The price of Bitcoin rose late Monday, passing $30,000 for the first time since early June after a quiet holiday weekend. The advance sent cryptocurrencies climbing higher with Ethereum regaining the $1,900 level. Meanwhile, MicroStrategy’s bitcoin stake came back in the black.
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Bitcoin rallied more than 6.3% in the past 24 hours to a high of $30,403 overnight, settling around $30,100 early Tuesday. Markets reacted to the latest inflation data from China. They showed that consumer prices rose 0.7% year-on-year for March, the slowest increase since September 2021.
The US publishes its CPI report on 12 April. The government’s March jobs report slightly missed Wall Street expectations last Friday.
The world’s largest cryptocurrency, Bitcoin, has risen 81% so far this year following the FTX collapse last November. Bitcoin price rose 20% in March and 38.7% in January. Furthermore, it has been trading in the $28,000 range since March 20.
Bitcoin price down 55% from all-time highs
Major cryptocurrencies, excluding stablecoins, proved to be safe havens during the recent banking panic. Some experts predict bitcoin will retest record highs this year as adoption picks up overseas.
Still, the bitcoin price is down about 55% from all-time highs near $68,000 as of November 2021.
Ethereum rose about 3.5% in the past 24 hours, trading around $1,920 as of Tuesday morning. The No. 2 crypto surpassed $1,900 on April 5 for the first time since mid-August. It hit a high of $1,941 to mark an eight-month high.
Ethereum is gaining momentum on its Shanghai upgrade on April 12. The upgrade will complete the transition to the proof-of-stake network from a proof-of-work network. Furthermore, it rose 10.6% in March and has risen 60.4% so far this year.
Effects on cryptocurrency-related stocks
Heavy BTC buyer Micro strategy ( MSTR ) opened 2.5% higher on Tuesday after climbing 3.3% premarket and jumping 7.82% on Monday as bitcoin prices rallied. Microstrategy’s bitcoin investments are back in the black after the recent swing.
The software vendor bought approximately 140,000 bitcoins for $4.17 billion. That worked out to an average price of $29,803 per bitcoin including fees and expenses.
MicroStrategy co-founder and chairman Michael Saylor tweeted “Bitcoin is Champion” on Tuesday morning after the advance. Saylor, a bitcoin maximalist who started MicroStrategy’s crypto investments, stepped down as CEO last August. That came after the company wrote down nearly $920 million in bitcoin holdings in the second quarter.
MSTR stock is up roughly 65% over the past three months and is up more than 120% year-to-date.
Coinbase continues to bounce
Coin base (COIN) was running 3.2% higher Tuesday morning after Monday’s 7.6% jump. CEO Brian Armstrong announced that Coinbase will eventually integrate the bitcoin Lightning network April 8, which will enable faster and cheaper BTC transactions than the base network. Armstrong did not provide details or a timeline for when the integration will take place.
COIN stock is up 53% in the past three months and 87% so far this year.
Bitcoin miner Digital Marathon (MARA) jumped 3% at Tuesday’s opening bell after its 14% rally on Monday. Cabin 8 Mining (HUT) bolted 7% higher after the open. The share rose 9.5 percent on Monday.
The bitcoin affiliate ProShares Bitcoin Strategy ETF (BITO) opened Tuesday up 3.3% and climbed 4.7% on Monday.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
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