On a promising Monday morning, Bitcoin (BTC-USD) soared to unprecedented levels, nearing the $85,000 mark. This remarkable achievement not only highlighted Bitcoin’s growing prominence but also catalyzed significant movements in the stock market, particularly among companies linked to cryptocurrency trading. The post-election atmosphere following Trump’s victory has further amplified this upward trajectory, offering a promising start to the week for investors.
COIN, HOOD Display Noteworthy Gains
The bullish sentiment among investors contributed to a remarkable surge in the stocks of Coinbase and other crypto-related companies. Coinbase (COIN) witnessed an impressive increase of over 17% on Monday alone, marking an astounding 70% growth over the last five trading sessions. Meanwhile, Robinhood (HOOD) experienced a substantial 8% rise in its stock value on Monday, culminating in a noteworthy 38% gain across five days.
Adding to the intrigue, Robinhood’s legal chief, Dan Gallagher, is reportedly among the top contenders for the role of SEC Chair under Trump’s administration. Trump’s strategic promises to the crypto industry include establishing a Crypto Presidential Advisory Council, replacing SEC Chair Gary Gensler, and developing a national bitcoin stockpile.
IBIT, MSTR, TSLA Experience Significant Growth
In a similar vein, BlackRock’s iShares Bitcoin Trust (IBIT), recognized as the largest bitcoin ETF, climbed nearly 11% during early trading on Monday. MicroStrategy (MSTR), which holds a substantial portfolio of nearly 280,000 bitcoins, saw its shares rise by over 18% on the same day. A recent disclosure from MicroStrategy revealed that between October 31 and November 10, the company acquired approximately 27,200 bitcoins at an average price of $74,463, achieving a BTC Yield of 7.3% for the quarter, with a net benefit to shareholders of 18,410 BTC and a 26.4% year-to-date return.
Tesla (TSLA) also rode the wave of Trump’s election victory, experiencing a remarkable 45% surge over the past five days and a 10% increase on Monday. This surge is partly attributed to Elon Musk’s connection with Trump, including a $132 million donation to Trump’s campaign.
BTC Mining Stocks on the Rise
Bitcoin mining stocks have been rallying, building on their gains from the previous week. The increasing interest from investors has propelled pre-market gains for Bitcoin mining companies. Noteworthy performers include Marathon Digital (MARA), CleanSpark (CLSK), and Riot Platforms (RIOT), all benefiting from the positive momentum. Bit Digital (BTBT) saw a remarkable 22.6% increase, while MARA Holdings (MARA) jumped 21% early Monday.
In light of the market rally, analysts at Bernstein have advised investors to enhance their exposure to the crypto industry promptly. They emphasize the need for investors who previously refrained from allocating resources to the crypto sector due to regulatory concerns to reconsider their stance. This shift in perspective is in anticipation of a more crypto-friendly regulatory environment under Trump’s leadership, starting with the appointment of a new SEC Chair. Additionally, Bernstein remains optimistic about their $200,000 bitcoin price target by the end of 2025. Greg Cipolaro, the global head of research at New York Digital Investment Group, asserts that Trump’s victory eliminates any remaining excuses for investors to avoid exposure to bitcoin.
The ETF Rally
Spot bitcoin ETFs witnessed a substantial influx of $1.63 billion during election week, although this was offset by total outflows of $657.9 million on Monday and Tuesday. BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the charge with an impressive $1.25 billion in inflows. Since their launch in January, spot bitcoin ETFs have garnered a total of $25.86 billion in inflows, despite facing $20.1 billion in outflows from the Grayscale Bitcoin Trust (GBTC). Notably, IBIT and spot bitcoin ETFs surged nearly 7% early Monday, reflecting the robust investor confidence in the crypto market.
