"Wow, that's the best, whoever buys this crypto stock must make a big profit, right?"
Shares of cryptocurrency miners and Bitcoin (BTC) tracking firms climbed higher in premarket trading last Friday as the price of BTC finally managed to see a massive rally to $41,727.
BTC has made gains since October 2023 as there is continued confidence in the potential approval of the spot BTC ETF which may release more capital investment in the crypto market.
Returning to the original description, among the BTC mining stocks whose profits improved as the price of the digital asset increased were Riot Platforms, Marathon Digital, Cipher Mining and TeraWulf following gains of between 2.4% and 4%.
Not only that, the stock of BTC mining machine maker Canaan also jumped almost 4% as the price of BTC rose plus there are mining firms increasing their production before the BTC halving event takes place next year.
Please note that Microstrategy shares also saw a significant increase of almost 5% while the ProShares Bitcoin Strategy ETF gained 2%.
It's true that crypto exchanges in the US have reported a drop in trading volume at the start of the month, but Coinbase shares still jumped 2.6% following a 62% gain in November 2023 that outpaced BTC's 11% climb.
According to CFRA Research analyst Michael Elliott, higher crypto prices should lead to an increase in transaction volume and transaction revenue for Coinbase as we enter 2024.
However, Elliott warned that crypto exchanges still face challenges in new laws and regulations, so the stock market may see volatility in the future.
