Volatility, thy name is cryptocurrency. And cryptocurrency stocks, to a lesser extent. As Wednesday closed trading, we found a wide range of cryptocurrency stocks, from Coinbase (NASDAQ:COIN) and Riot Platforms (NASDAQ:RIOT) to Marathon Digital (NASDAQ:MARA) and Microstrategy (NASDAQ:MSTR) all closing higher. And the reason for this universal gain? Bitcoin (BTC-USD) gained to clear $30,000 a coin for the first time since late April.
The good news for Bitcoin HODLers is that the traditional finance giants swung back into the market, likely in the wake of Federal Reserve chairman Jerome Powell’s suggestion that rate hikes—paused in the most recent session—may be making a comeback in later sessions to further address inflationary pressures. With BlackRock (NYSE:BLK) still in the hunt to establish a Bitcoin exchange-traded fund (ETF) in the U.S., that’s giving the crypto a little extra fuel to run.
It’s little surprise, therefore, that some of the stocks most closely connected to cryptocurrency—especially Bitcoin—are thus having a field day. Microstrategy is widely known for its Bitcoin holdings and was known for having its share price fluctuate according to swings in Bitcoin pricing. Coinbase remains among the leaders, if not actually the leader, in cryptocurrency exchanges. Marathon Digital recently stepped into EDX Markets, a new crypto exchange that offers support from an array of Wall Street firms. And Riot Blockchain, which mines Bitcoin, is largely self-explanatory as to why it gained.
All four stocks finished up, though not to the same extent. Marathon Digital Holdings stock, a Strong Buy by analyst consensus, has the largest upside potential and the second-highest gains of the four in question. With an average price target of $14.75, it offers investors a 20.8% upside potential. Meanwhile, the smallest gainer today, Coinbase stock, a Hold, can only offer a 1.29% upside potential on its $58.85 average price target.
