Bitcoin rally continues driving crypto-related stocks higher
The latest rally in cryptocurrency prices – led on Tuesday by bitcoin, bitcoin cash and litecoin – has provided a stimulus for a number of crypto-related companies listed on equity exchanges.
Shares in bitcoin mining companies had been particularly hard hit in the downturn that followed the peak of bitcoin close to $20,000 in December and other crypto coins in January.
Concerns for miners peaked when, in April, Morgan Stanley issued a note saying it estimated the break-even point for big mining pools was when bitcoin was around $8,600 – a level bitcoin last touched, briefly, when it was in freefall in May.
Shares in Canada’s 360 Blockchain peaked in November 2017 at C$0.39 before falling as low as C$0.045 four weeks ago. It has since rallied 44% to C$0.065. DMG Blockchain has also had a similarly turbulent few months, peaking at C$1.98 in February, before falling to a low of C$0.20 four weeks ago. Since then it has jumped 85% to C$0.37.
HashChain Technology – another Toronto-listed miner – has rallied 70% from its low in June to Monday’s close of C$0.17. Completing a Canada foursome, Hive Blockchain as risen 45% to C$0.90 from its trough of C$0.62 in late June.
Some much larger stocks have also benefited. AMD and Nvidia, both of whom provide high-power graphics units for mining gear, had fallen in June, and have since mounted modest rallies.
AMD hit its June low of $14.54 and has since rallied 14.5% to $16.66. Nvidia just from the start of this month has rallied 7% to $249.41.
And much of it has been down to the crypto rally this month. Bitcoin is up by around a third in July, passing through the key resistance level of $8,000 on Tuesday morning for the first since 23 May.
And bitcoin and its cryptocurrency rivals were mainly higher on Tuesday. Here’s a round-up of the price movements of the top 10 digital currencies by market capitalisation as at 11am on Tuesday [London time]:
- Bitcoin was up 3.9% to $8,025.10
- Ethereum added 1.3% to $471.45
- Ripple gained 0.1% to $0.46
- Bitcoin cash rose 4.3% to $ 859.09
- Eos fell 0.8% to $8.09
- Stellar lumens gained 1.2% to $0.29
- Litecoin climbed 3.6% to $87.82
- Cardano lost 2.9% to $0.17
- Iota fell 0.7% to $0.97
- Tether was unchanged at $1