Shares of several companies with deep ties to the cryptocurrency market witnessed an upward shift on Tuesday, Feb. 2.
As much as 10.1%, was gained by Cryptocurrency asset manager Riot Blockchain. While Marathon Patent Group, a Chinese-American cryptocurrency mining expert reached a high of 11.6%, and Canadian crypto-mining company Hive Blockchain peaked at 12.3%. Many of the leading cryptocurrency tokens are on the rise and therefore, the stocks are surging. This should translate into stronger financial results for all of these companies.
In 24 hours Bitcoin prices are up by 5.6%, and Ethereum prices have gained 12.5% over the same period. After a wild weekend Ripple stabilized, and that token for cross-border transactions has now gained 42% in a week. Ethereum competitor Cardano and the bitcoin alternative Litecoin have gained more than 10% in just a day.
Cryptocurrencies are known for their unstable price swings, often crashing or soaring for no predominantly good reason. However, it is different this time and the blockchain-based sector actually has some solid news to share.
A new bitcoin fund was announced by the index funds manager Bitwise Asset Management. This will intend to provide an alternative to the popular Grayscale Bitcoin Trust with lower management costs. This fund will help bitcoin’s liquidity and price stability whilst influencing first-movers like Grayscale to improve their existing fund options.
The cryptocurrency exchange Gemini is launching interest-bearing cryptocurrency accounts. Gemini’s crypto savings account offers annual percentage yields of up to 7.4%. Crypto tokens could be treated as serious currencies or investment assets if this type of cryptocurrency holding accounts becomes common.
MicroStrategy is going all out buying bitcoin, announcing recently that it had acquired another 295 tokens worth $10 million in cash. At current bitcoin prices, it now holds 71,079 bitcoin, worth $2.54 billion. The original price tag for this bitcoin reserve was roughly $1.15 billion. Following MicroStrategy’s, larger corporations lead to move a portion of their long-term investments into bitcoin and other crypto tokens. Resultantly, this would make a world of a difference to the financial stability of these markets.
Telsa CEO Elon Musk had been supporting the not-so-serious Dogecoin token in a series of tweets recently, but lately, he said that those were all jokes. In reality, according to the Telsa CEO bitcoin is a good thing and is a supporter of this specific token. It is also noted by him that the bitcoin shall soon be getting broad acceptance by conventional finance people. And as they say, when the world’s richest man speaks, markets react.
The fate of cryptocurrency is unknown as governments around the world prepare to develop legal and regulatory frameworks for handling these digital assets. It is uncertain where bitcoin, Ethereum, and other cryptocurrencies are going next.