Crypto stocks enjoyed a strong day in the markets today as Bitcoin finally mounted a recovery. Companies like MicroStrategy, Bakkt (NYSE:BKKT) and Coinbase (NASDAQ:COIN) are now all well in the green.
Crypto companies tend to rise and fall with the largest crypto by market capitalization: Bitcoin. As such, with BTC eyeing a 3% jump at one point today, it’s no surprise that related companies are making comparable returns.
Bakkt, a banking-as-a-service company turned digital asset exchange platform, closed up 7.5% today. Bakkt is one of the newer major players in the space, giving customers access to crypto integrated with its banking functions. Shares of the company have plummeted alongside BTC over the past few months, so today’s jump is a promising sign for BKKT stock investors.
Coinbase, the second-largest crypto exchange by market capitalization, is also up 3.7% on today’s boom. This comes even after short-selling legend Jim Chanos called the company “tremendously overvalued.”
MicroStrategy is perhaps the biggest winner of the current boom, however. MSTR stock surged nearly 21%. The company holds around 129,200 BTC on its balance sheet, making it one of the largest publicly traded names owning Bitcoin. It comes with little shock that the Bitcoin rebound was a bullish indicator for the company.
Crypto Stocks Surge as Crypto Eyes a Major Recovery
Crypto seems to have started bouncing back over Memorial Day weekend. Since the close of May 27, BTC has climbed nearly 11%. Last week, JPMorgan strategists even predicted crypto may be in the early stages of a recovery. The bank set a Bitcoin price target of $38,000, well above its current $31,750 price point.
BTC reached $31,000 today for the “first time since May 16,” possibly setting the stage for a greater crypto market recovery. Ethereum (ETH-USD) also climbed briefly before losing today’s gains. Meanwhile, Cardano (ADA-USD) is trending up 8%.
It remains to be seen if crypto stocks can hold onto today’s gains. That said, investors should be happy to see an even temporary break from the bearish wave taking over the market these past few months.
On the date of publication, Shrey Dua did not hold (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.