Today, cryptocurrency stocks are once again in focus for investors. The crypto market has continued its volatile ways, trending in a positive direction in recent days. With capital inflows into risk assets ebbing and flowing, this has been an intriguing space to watch.
Today, there’s some good flow underway for cryptocurrencies and crypto-related stocks. Coinbase (NASDAQ:COIN), Bit Digital (NASDAQ:BTBT), Sphere 3D (NASDAQ:ANY) and Marathon Digital (NASDAQ:MARA) are all up between 5% and 16% at the time of writing. These moves come amid some sharp spikes and drops for each of these stocks in recent weeks. The price of Bitcoin (CCC:BTC-USD) recently broke through the $50,000 level and is now approaching the $55,000 threshold.
Can this momentum be maintained? Time will tell.
However, today, investors are focusing on a couple key catalysts. Let’s dive into what’s driving cryptocurrency stocks higher today.
Cryptocurrency Stocks Boom Amid Catalysts
Various regulatory concerns in the crypto world have poured cold water on this sector of late. China’s outright ban on crypto mining and investing has provided a significant headwind for the sector. Accordingly, investors have been on edge with respect to what regulators would do closer to home.
Today, Securities and Exchange Commission (SEC) Chair Gary Gensler has commented that the SEC won’t ban crypto. This vote of confidence echoed previous statements for Fed Chair Jerome Powell last week.
With regulatory uncertainty seeming to be dying down, crypto investors are increasingly focused on whether capital will continue to flow into the crypto market, relative to other markets investors have available to them. In this regard, Coinbase appears to be painting a bullish picture.
The company has noted it expects to see robust trading volumes this quarter. Trading volumes could be up as much as 18% this quarter, with revenues increasing by double digits as well. Indeed, for crypto investors, the near-term outlook for this sector appears much brighter today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
