Posted 1/2/2024, 9:41:12 PM
Bitcoin and Crypto Stocks Rally on New Year Gains and ETF Hopes
- Bitcoin and crypto-related stocks like MicroStrategy and Riot Platforms jumped to start 2024 due to crypto market gains over the past few days
- MicroStrategy stock is highly leveraged to Bitcoin price movements due to large Bitcoin holdings on its balance sheet
- Riot Platforms also holds substantial Bitcoin and sells much of what it mines, so Bitcoin price impacts its balance sheet
- Continued rumors of a Bitcoin ETF approval may be boosting prices, but actual approval could result in a "sell the news" reaction
- Bitcoin often moves with growth stocks, so further stock market gains in 2024 could lift Bitcoin while a correction could hurt it