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Crypto-related stocks rise in U.S. premarket trading amid Bitcoin rally

Published 17/01/2023, 11:55
© Reuters

By Scott Kanowsky

Investing.com -- Shares in companies exposed to cryptocurrencies rose in premarket U.S. trading on Tuesday following a two-week surge in the price of major digital token Bitcoin.

As of 05:47 ET (10:47 GMT), Bitcoin was trading up by 1.29% at $21,128.0, extending its recent winning streak into a fourteenth day. It is now on course for its longest rally since last November.

The move drove crypto-related stocks higher, including exchange platform Coinbase Global Inc (NASDAQ:COIN), as well as cryptocurrency miners like Hut 8 Mining Corp (NASDAQ:HUT), Bitfarms Ltd (NASDAQ:BITF), and Marathon Digital Holdings Inc (NASDAQ:MARA).

Investors are now hoping that the decline in Bitcoin seen in 2022 may have bottomed. Its price fell sharply last year as fears over a spike in inflation fueled a round of central bank policy tightening that sparked an exodus from cryptocurrencies, which have increasingly been grouped in with riskier assets like stocks.

Some analysts have also argued that the rally is linked to recent macroeconomic data suggesting that soaring prices may have peaked, which could in turn lead to a slowdown in the spate of aggressive interest rate hikes.

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