Today in Markets

Crypto Stocks Outpace Crypto

Stocks finally catch a break after a tough month.
Jan 29, 20241 min read

Crypto stocks recover. Crypto equities have dumped all month, but they’re finally catching a bid alongside broader crypto markets! Why has negative price action reversed?

Prior to the approval of spot BTC ETFs, the best route to crypto exposure from a traditional brokerage was equity in a publicly listed company intrinsically linked to crypto, either by virtue of their business operations or by holding a ton of crypto.

Some of these investors would rather hold actual crypto instead of the equity of an individual company and have been offloading their shares to purchase spot BTC ETFs. These sales explain why crypto equity share prices traded down as tokens rallied leading up to ETF approval in January and why they experienced amplified downside during the post-approval decline.

While today has been a dull day for broader markets, equities outpaced the 2.2% gains made by the total crypto market cap and continue to compound on gains made late last week, with Michael Saylor’s MicroStrategy (MSTR) up 3.1%, Bitcoin miner CleanSpark (CLSK) pumping 4.7% and crypto exchange Coinbase (COIN) ripping 6.1%!

Despite being hammered lower by sellers throughout January, the recent bout of strength in crypto equities indicates that momentum may now be balanced for the first time in a month and is providing hope for crypto equity bulls that February may bring relief.

Source: TradingView

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