Crypto Miners and Exchanges Benefit from Bitcoin's Rally
In premarket U.S. trading, crypto miners Riot Platforms (NASDAQ: RIOT) and Marathon Digital Holdings Inc (NASDAQ: MARA), Bitcoin investor MicroStrategy Incorporated (NASDAQ: MSTR), and digital coin exchange platform Coinbase Global Inc (NASDAQ: COIN) all experienced gains of over 2%.
Cryptocurrency Market Cap Reaches $1.4 Trillion
At 08:28 ET (12:28 GMT), Bitcoin's value increased by 6.16%, reaching $30,052.3, while other cryptocurrencies such as Ethereum, Binance Coin, and Ripple also experienced growth. This surge helped raise the total crypto market capitalization to $1.4 trillion.
Bitcoin Outperforms Other Assets in 2023
This year, Bitcoin has seen an increase of approximately 80%, surpassing other asset classes' performance. This latest surge is connected to an overall improvement in market sentiment as investors consider the possibility of a limited number of interest rate hikes by the Fed in the coming months, particularly as the U.S. economy cools further.
Fed's Less Aggressive Stance Benefits Cryptocurrencies
A less hawkish approach by the Fed is favorable for Bitcoin and other cryptocurrencies, especially after a significant increase in borrowing costs eliminated over two-thirds of the crypto market's total capitalization last year.
Bitcoin's Safe Haven Appeal Amid Financial Concerns
Over the past month, Bitcoin has been on a remarkable uptrend, attracting haven investments due to concerns surrounding a potential broader collapse in the financial services industry.