Keep an eye on these crypto stocks surpassing your Bitcoin and other digital currency investments
Crypto Action Supernova:
Bitcoin roared over the $110,500 mark on Monday, with the crypto heavyweight wobbling slightly as bullish energy begins to dwindle. Strikingly, US crypto-linked stocks surged alongside Bitcoin, currently hovering in sync with the king of crypto.
In this thrilling deep dive, we'll compare the performance of crypto stocks, Bitcoin, and altcoins while assessing the profitability of the sector in a trader's portfolio.
Let's set sail and conquer the crypto seas!
US Stock Rockets vs. Bitcoin's Majesty
The crypto-linked US market galloped with Bitcoin on Monday. As Bitcoin tackled resistance above the $110,500 threshold and started to consolidate, crypto-linked mining stocks and major crypto firms shed their recent gains on Tuesday.
Corporations following MicroStrategy's lead of adding Bitcoin to their treasury, coupled with Circle's triumphant Nasdaq debut last week, have boosted Bitcoin prices and lifted US crypto stocks.
Circle Internet Group (CRCL), one of the largest stablecoin creators, slashed nearly 8% on the day, slipping down to $106.62, almost undoing its Monday wins.
Key crypto mining stocks, like Core Scientific Inc. (CORZ), CleanSpark Inc. (CLSK), and MARA Holdings Inc. (MARA), observed minimal changes in their prices on Tuesday. Meanwhile, Riot Platforms Inc. (RIOT) gained 0.60% on Tuesday's market turmoil.
Bitcoin edged closer to its support at $108,000 on the day, while crypto stocks continued their consolidation. With Bitcoin's correlation to the S&P 500 dropping, a theory of smart investors favoring crypto stocks over direct token investment arises.
The decline in crypto stocks like CRCL, Coinbase (COIN), KULR Technology Group Inc. (KULR), and Robinhood Markets Inc. (HOOD) leaves a portal for sideline investors to mull over adding these crypto stocks to their portfolios, finding a balance against their crypto token stash this cycle.
Should Bitcoin's bond with the S&P 500 weaken further, it's plausible that crypto stocks will outshine BTC and altcoin holdings this market journey.
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After scaling to a new peak on Monday, CRCL has plummeted, causing a harsh sell-off. Tuesday's chart for CRCL shows a consistent downward plunge, with recovery still uncertain.
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While Bitcoin's investment funds struggle with institutional capital inflows as per the latest CoinShares report, the combined market value of publicly listed crypto companies exceeds $300 billion.
The inflow into firms behind US crypto stocks has significantly increased amidst Bitcoin's recent consolidation. The demands for exchange stocks, Bitcoin mining stocks, and stablecoin issuer Circle's CRCL continue to surge.
Regulations like the GENIUS Act promote a pro-crypto environment for expanded growth in crypto stocks. Analysts believe that the rise in Robinhood's crypto revenue and Coinbase's undervalued stock at this moment signals a paradigm shift in the market.
Retail investors aspiring to carve out Bitcoin chunks may be captivated by crypto stocks due to better regulatory clarity on custody and taxation of cryptocurrencies.
Bitcoin Price Analysis
With Bitcoin knocking on the door of its all-time high of $111,980, a retest of this level or even a breakout is imminent. A daily candlestick close beyond this barrier could catapult BTC into uncharted territory pricewise.
Technical indicators, RSI and MACD, strengthen the case for BTC price advancement. RSI reads 62, teetering above the average but far from the overvalued 70 level. MACD generates green histogram bars above the neutral level, illustrating positive momentum in BTC prices.
If Bitcoin dashes 11% towards the 127.2% Fibonacci retracement level of $122,172, it may find support at $106,488, the lower boundary of the FVG on the daily price chart.
According to Ruslan Lienkha, Chief of Markets at YouHodler, "As the price stands just a few percentage points below its previous peak, there's a strong potential for Bitcoin to set a new all-time high. However, the odds of a reversal remain, especially if upcoming economic data disappoints, such as the U.S. inflation report scheduled for tomorrow."
Disclaimer:This information does not serve as financial advice. This content is meant for educational purposes only.
Extra Knowledge:
Mining operations, institutional investments, regulatory compliance, and the overall economic climate may further impact the crypto landscape. Risk and reward management are crucial when navigating the crypto waters.
[1] Overview of Cryptocurrencies: Bitcoin (BTC) Price Prediction 2025 - Retrieved on March 22, 2022, from https://www.fool.com/the-ascendancy-report/overview-of-cryptocurrencies-btc-price-prediction-2025/
*[2] Alexander, J. (n.d.). How to determine the Bitcoin price prediction, the top cryptocurrency indicator of all time. - Retrieved on March 22, 2022, from https://},
- In the realm of crypto finance, investors might find it prudent to consider the potential profits of Bitcoin, altcoins, and crypto stocks within a portfolio, as our Crypto Action Supernova journey unfold.
- Interestingly, the United States crypto-linked stocks have mirrored Bitcoin's performance, a phenomenon observed during its recent surge past the $110,500 mark.
- As Bitcoin approached resistance above the $110,500 threshold on Monday, crypto-linked mining stocks and major firms saw a minor reversal in their gains on Tuesday.
- The DEX (decentralized exchange) market, like that of Coinbase, has been impacted by the influx of institutional capital, leading to increased demand for certain crypto stocks.
- Tron-based stablecoin creator Circle Internet Group (CRCL) experienced a dip of nearly 8%, lesioning Monday's gains and raising questions about its immediate future.
- The overall financial climate, mining operations, regulatory compliance, and institutional investments all play significant roles in shaping the crypto landscape.
- The decline in some crypto stocks presents a potential opportunity for sideline investors, who might now consider balancing their portfolios with these crypto stocks, while managing their crypto token holdings during this market cycle.
