Market Awaits Rate Decision as Crypto Stocks Strongly Rebound; COIN Up 2.1%
In the past 24 hours, cryptocurrency stocks have seen capital inflows, reversing the outflows that occurred three days before the Federal Reserve’s interest rate decision. Despite the broader market’s sideways movement, crypto companies have been gaining momentum.
In the first quarter of 2024, cryptocurrency stocks recorded substantial capital inflows. However, last week saw an exit due to weakened market sentiment, with these stocks following broader crypto assets downward after the release of US employment data. Yet, ahead of the Federal Reserve meeting, intraday trading showed gains, with US tech stocks and crypto stocks turning green again.
On Monday, digital asset exchange Coinbase (COIN) rose by 2.1%, trading at $241.81. This increase pushed the stock’s weekly gain to over 8%, recovering previous market losses. COIN often trades in tandem with the cryptocurrency market, and as digital asset prices rebound and trading volumes surge, the stock has risen.
MicroStrategy (MSTR) remains bullish on Bitcoin, with its stock trading at $1,599, up 0.25%, moving back into positive territory. If Bitcoin prices rise, this asset has maintained a 28% monthly gain over the past 30 days due to growing optimism.
Following a positive shift in market sentiment, Bitcoin mining stocks also saw capital inflows on Monday. Marathon Digital (MARA) rose 1%, though its weekly data still shows a decline.
Meanwhile, Canadian mining company Hut 8 climbed 1.8%, trading at $13.58, continuing a weekly uptrend of over 12%. Bitcoin mining stocks have outperformed other crypto stocks, breaking past the $71,500 price mark.
Cryptocurrency market participants are now eyeing the upcoming Federal Reserve meeting, with many analysts predicting outcomes similar to past meetings. This outlook is influenced by last month’s better-than-expected US employment data and the country’s rising unemployment rate.
Private cryptocurrency placements have declined post-reissue, with top cryptocurrencies struggling to recover. JPMorgan and Citigroup have delayed their expectations for a rate cut to July, now anticipating it will come later than initially thought.
As the market anticipates the Federal Reserve’s interest rate decision, crypto stocks have shown a strong rebound, with Coinbase and other major players leading the way. Investors remain cautiously optimistic, monitoring economic indicators and regulatory developments closely.
