Following Donald Trump’s victory last week, two prominent crypto stocks, MicroStrategy (MSTR) and Coinbase (COIN), have seen extraordinary gains, outperforming some of the world’s largest tech companies. Both stocks surged by more than 50%, capturing significant attention from investors and analysts alike. On Monday, the trading volumes for MSTR and COIN skyrocketed past $10 billion, surpassing the daily trading activity of well-known tech giants like Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META), all part of the elite “Magnificent 7” group.
📙 Here is a screenshot for the history books 👇$MSTR w/ $15.7 BILLION trading volume & #3 of all 🇺🇸 equities$COIN at #4 w/ $13.5 Billion and $MARA w/ $3 Billion.📚 pic.twitter.com/8x9c7OykyN
— HODL15Capital 🇺🇸 (@HODL15Capital) November 11, 2024
MicroStrategy And Coinbase Dominate The Market
Bloomberg ETF strategist Eric Balchunas highlighted the unprecedented volume in the crypto sector, calling it a monumental event. The “Bitcoin Industrial Complex,” which includes Bitcoin ETFs, MicroStrategy, and Coinbase, saw daily trading volumes exceed $38 billion, a figure that puts them on par with some of the most traded assets in the world. In particular, BlackRock’s IBIT Bitcoin ETF alone recorded a staggering $4.5 billion in volume, indicating the growing demand for crypto investments.
Among these giants, MicroStrategy stood out. With $15.7 billion in daily trading volume, MSTR ranked in the top three of all U.S. equities, right behind Tesla and NVIDIA. On Monday, November 11, MSTR shares surged by an impressive 69 points, reaching a new all-time high of $340. This breakout marks a significant milestone for the company, which has been on a 25-year-long journey toward this achievement.
The company’s announcement of a $2 billion Bitcoin purchase only added to the excitement, as it added 27,200 BTC at an average price of $74,463 per coin between October 31 and November 10. With Bitcoin already up 20% from the purchase price, MicroStrategy’s strong BTC position is expected to further drive its stock price, particularly as MSTR prepares to join the prestigious S&P 500 index. This move could potentially bring in an additional $10 billion in inflows, pushing the stock price closer to $500.
Coinbase Joins the Crypto Rally
Coinbase, another major player in the crypto space, also experienced a massive surge, with its stock price jumping 75% in just five trading sessions. As of now, COIN is trading at $324, a nearly three-year high. The stock’s recent performance mirrors the growing institutional interest in cryptocurrency, particularly in Bitcoin, as mainstream investors continue to flock to crypto ETFs.
Also Read: MicroStrategy Acquires 27,200 BTC in Two Weeks, Now Holds $22.87B in Bitcoin as Price Soars to $82K
Bitcoin ETF Demand Remains Strong
The surge in crypto stock prices is closely tied to the ongoing demand for Bitcoin spot ETFs. On Monday, these ETFs saw over $1.1 billion in inflows, with nine ETFs collectively acquiring 13,940 BTC in just one day. BlackRock’s IBIT ETF took the lion’s share, receiving more than $750 million in inflows. With total Bitcoin ETF inflows now exceeding $27 billion, the demand for these financial products remains robust, signaling a growing institutional adoption of Bitcoin as a mainstream asset.
The impressive gains of MicroStrategy and Coinbase following Trump’s victory highlight the increasing prominence of crypto stocks in the broader market. With strong demand for Bitcoin ETFs and a bullish crypto market sentiment, these stocks are poised to continue their upward trajectory, reshaping the landscape of both the tech and financial sectors. As Bitcoin hits new all-time highs, the crypto market’s influence on traditional equities is only expected to grow.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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