The price of Bitcoin rallied late Monday, surpassing $30,000 for the first time since early June after a quiet holiday weekend. The advance sent cryptocurrencies climbing higher with ethereum reclaiming the $1,900 level. Meanwhile, MicroStrategy's bitcoin bet got back in the black.
Bitcoin surged more than 6.3% overnight Monday to peak at $30,548 intraday Tuesday, settling above $30,100 by the afternoon. Markets reacted to the latest inflation data from China. They showed consumer prices rose 0.7% year-over-year for March, the slowest increase since September 2021.
The United States releases its CPI report on April 12. The government's March jobs report slightly missed Wall Street expectations last Friday.
The world's largest cryptocurrency, Bitcoin has rocketed 81% so far this year following the FTX collapse last November. The bitcoin price vaulted 20% in March and 38.7% in January. Further, it has traded in the $28,000 range since March 20.
Bitcoin Price Down 55% From All-Time Highs
Major cryptocurrencies, barring stablecoins, proved to be safe heavens during the recent banking panic. Some experts forecast bitcoin to retest record highs this year as adoption picks up overseas.
Still, the bitcoin price is down roughly 55% from its all-time highs near $68,000 from November 2021.
Ethereum rallied roughly 3.5% overnight to $1,920 Tuesday morning and dipped below its $1,900 level in the afternoon. The No. 2 crypto surpassed $1,900 on April 5 for the first time since mid-August. It peaked at $1,941 to mark an eight-month high.
Ethereum is gaining steam ahead of its Shanghai upgrade on April 12. The upgrade will complete its transition to proof-of-stake network from a proof-of-work network. Further, it rose 10.6% in March and has bolted 60.4% year-to-date.
Effects On Cryptocurrency-Related Stocks
Heavy BTC buyer MicroStrategy jumped nearly 6.26% Tuesday after leaping 7.82% Monday as the bitcoin price rallied. Microstrategy's bitcoin investments are back in the black after the recent swing.
The software seller purchased approximately 140,000 bitcoin for $4.17 billion. That worked out to an average price of $29,803 per bitcoin including fees and expenses.
MicroStrategy co-founder and chairman Michael Saylor tweeted "Bitcoin is Champion," Tuesday morning after the advance. Saylor, a bitcoin maximalist that initiated MicroStrategy's crypto investments, stepped down as chief executive last August. That came after the company's impairment charge of nearly $920 million on bitcoin holdings in the second quarter.
MSTR stock spiked nearly 75% over the past three months and rocketed 135% year-to-date.
Coinbase Keeps Jumping
Coinbase raced 4.2% higher Tuesday following its 7.6% jump Monday. CEO Brian Armstrong announced Coinbase will eventually integrate the bitcoin Lightning network on April 8, which will enable faster and cheaper BTC transactions than the base network. Armstrong did not provide details or a timeline on when the integration will occur.
COIN stock is up 62.4% over the past three months and surged 98.3% so far this year.
Bitcoin miner Marathon Digital bolted 12.4% at Tuesday following its 14% rally Monday. Hut 8 Mining spiked 7.6% higher during trading. Shares leapt 9.5% Monday.
The bitcoin-linked ProShares Bitcoin Strategy ETF rose about 3% Tuesday and climbed 4.7% Monday.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
