Crypto stocks are trending on Friday amid what is turning into a choppy session on Wall Street. Stocks are working on their fourth decline in the last five trading sessions. After a robust rally, the S&P 500 is taking a breather.
However, there’s been no rest for Bitcoin (BTC-USD).
Bitcoin is up almost 5% on the day and is hitting a 52-week high. Additionally, it has been exploding higher. Shares are up in four of the last five days, and so far, it’s been the exact opposite of the S&P 500 over that stretch.
Additionally, Bitcoin prices have rallied in seven of the last nine days. In that stretch, bulls have seen a 27% rally. For the year, Bitcoin is now up 90%.
As for crypto stocks, the run in Bitcoin — and other cryptocurrencies as well — has helped give a nice boost to these names. When we look across the board:
- MicroStrategy (NASDAQ:MSTR) is up about 1% on the day and 14% for the week.
- Coinbase (NASDAQ:COIN) is up 6.7% on the day and 10.3% for the week.
- Marathon Digital (NASDAQ:MARA) is up almost 9% on Friday and 29% for the week.
- Riot Platforms (NASDAQ:RIOT) is up about 5% for the day and the week.
These names are rallying as Bitcoin and others rally… but why is Bitcoin rallying?
Crypto Stocks Follow Bitcoin Higher
Bitcoin’s surge is a huge catalyst for these stocks. Even though Bitcoin remains well off its all-time high, its hitting one-year highs will surely help sentiment improve.
Other recent catalysts include the Supreme Court’s recent ruling in favor of Coinbase regarding its arbitration dispute. In a 5-4 ruling, “litigation must be put on hold if a defendant starts an appeal that would direct the case to arbitration.”
Additionally, BlackRock (NYSE:BLK) filed with the Securities and Exchange Commission (SEC) to launch its own Bitcoin exchange-traded fund (ETF). Invesco and WisdomTree (NYSE:WT) have quickly followed suit. More access to Bitcoin could bode well for future prices if and when these ETFs launch.
Lastly, EDX Markets “launched its digital asset market on Tuesday and completed an investment round with new equity partners.” The company is backed by some big names too, including Charles Schwab (NYSE:SCHW), Citadel Securities and Fidelity Digital Assets.
All in all, these catalysts have combined to drive crypto and crypto stocks higher over the last week, and bulls will be looking for more in the weeks to come.
On the date of publication, Bret Kenwell 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.
