Crypto stocks are pulling back today after Bitcoin (BTC-USD) topped $45,000 per coin yesterday for the first time since 2022. Indeed, crypto companies are entering the new year in a mixed state despite recent strength in the digital currency space.
What’s behind today’s surprise crypto movement?
Well, it appears the “everything rally” is being tested today as investors show some skittishness after last year’s strong finish. This, of course, includes some crypto stocks, many of which are suffering minor pullbacks today.
Coinbase (NASDAQ:COIN), and Block (NYSE:SQ) are each down about 4.5% at the time of writing. The S&P 500 is also down on the first day of trading in 2024, currently in the red by 0.45%.
Not everyone’s feeling the cold, however. Microstrategy (NASDAQ:MSTR) is surging today, up 13%. Likewise, BTC is up 2.4% in the past 24 hours, while Ethereum (ETH-USD) is up about 2.5%.
What’s Going on With Crypto Stocks Today?
By most accounts, it is a good time to be a crypto fan. Indeed, flagship digital currencies like Bitcoin and Ethereum enjoyed gangbuster years in 2023, climbing 170% and 95%, respectively.
With the potential for falling interest rates on the way, many investors also have high hopes for crypto in the new year. If you recall, Federal Reserve Chair Jerome Powell hinted at three or more rate cuts coming in 2024 at the December policy meeting. This has spurred tech stock and crypto investors into a frenzy.
In recent weeks, the S&P and Nasdaq Composite have flirted with new all-time highs as hopes are raised that the Fed may actually pull off the oft-mentioned soft landing.
Crypto has, of course, been a big part of that conversation, with BTC and Ethereum both reclaiming local peaks.
As such, while crypto stocks are a bit mixed today, it could easily wind up being a technical selloff, symptomatic of some investors cashing in on recent gains.
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.
