Coinbase and MicroStrategy stocks have experienced a significant increase, rising by 6% and 7% respectively, as the price of Bitcoin surged above $59,000. This positive movement in the market on August 8th saw Coinbase (COIN) trading at around $192.30 and MicroStrategy’s MSTR hovering near $134.23. These gains are a result of Bitcoin’s recent surge, which has seen the cryptocurrency extend its momentum after surpassing the $50,000 mark. In the past 24 hours alone, Bitcoin has gone up by 7%, while losses over the past week have decreased to about 5%.
Analysts believe that the crypto markets may be volatile due to potential bearish catalysts. Despite this, long-term holders have been actively buying the recent dip in the market. Even though some traders were liquidated while trading Bitcoin futures during the recent dip to $49,000, long-term holders added over 184,500 BTC to their portfolios, which is currently valued at around $10 billion.
The positive movement in Bitcoin’s price coincided with XRP leading the crypto market higher following a recent court ruling in the Ripple vs. SEC case. XRP traded above $0.63, supporting other altcoins like Stellar (XLM) to rise. Ethereum also breached the $2,600 mark, showing signs of strength in the market. However, XRP is facing resistance at a key zone, and Ethereum may encounter bearish pressure from potential selling.
Analysts at QCP Capital have noted that there could be a cap on the topside in the near term, especially with Jump Trading continuing its ETH liquidations and Plus Token Ponzi 2 ETH wallets moving a significant amount of Ethereum in the last 30 hours. The broader market remains cautious due to concerns about the global macro environment and geopolitical tensions in the Middle East. As a result, the crypto market could experience a retreat in the coming weeks amid this uncertain and choppy period.
Overall, the recent surge in Bitcoin’s price has positively impacted Coinbase and MicroStrategy stocks, reflecting the overall bullish sentiment in the crypto market. However, the market remains volatile, and investors should exercise caution and stay informed about potential catalysts that could influence prices in the near future.