Bitcoin has broken through the $100,000 mark for the first time, with shares in closely correlated stocks poised to gain or lose value depending on the cryptocurrency’s future trajectory.
The surge follows a rally sparked by President-elect Donald Trump’s victory, which boosted hopes for more favorable cryptocurrency policy. Trump also announced plans to nominate Paul Atkins as the new head of the Securities and Exchange Commission, known for his pro-crypto stance.
Several popular connected stocks have seen significant gains in early trading, including Coinbase, Riot Platforms, and Mara Holdings. These companies boast high correlations with bitcoin, ranging from 78% to 82%. MicroStrategy, which has been accumulating digital currency, also saw its shares rise by 134% since the start of the quarter.
However, these stocks risk seeing significant losses if enthusiasm for the cryptocurrency reverses. As the stakes mount, investors are closely watching their performance in relation to bitcoin’s movement. With bitcoin currently up about 2% at $101,201, the outlook for these connected stocks remains uncertain until further notice.
Source: https://www.cnbc.com/2024/12/05/these-are-the-stocks-with-the-highest-correlation-to-bitcoin-as-the-digital-currency-tops-100000.html