Within the last 10 days, retail traders have bought almost $1 billion worth of shares of exposed cryptocurrency companies. Despite their extreme price swings from buying company stock from Revlon to GameStop, they have upped their games by buying key cryptocurrency stocks.
This recent purchase outburst included Coinbase Global stocks, Marathon Digital Holdings, and Riot Blockchain. These assets were bought earlier this week on Fidelity’s platform.
According to the senior market analyst at Oanda, Ed Moya, “Retail traders are surfacing here. Everyone expected one last major plunge for Bitcoin, and now prices are recovering, and risk appetite on Wall Street is somewhat improving. “
As the bitcoin renaissance begins, the NYSE FactSet Global Blockchain Technologies Index is moving towards achieving its most significant monthly gain since February 2021. Besides this, other biggest gainers this month include Marathon Digital, which skyrocketed 133 percent. However, Coinbase, Silvergate Capital, and Riot Blockchain experienced an upsurge of 50 percent. Regrettably, these stocks haven’t recovered from the dip, as they are 40 percent down.
In addition, the Bloomberg Galaxy Crypto Index, which monitors the performance of several digital assets such as bitcoin, has increased by 35 percent within this period. Since June ended, more than half of the 20 best-performing US EFTs are cryptocurrency related. Despite this, the Bitcoin price has been 51% down since the start of the year.
Notwithstanding the July Bitcoin price rebound, cryptocurrency-related companies are part of the worst performing stocks as investors are leaving risky assets because of the Federal Reserve policy that might make the economy enter into a recession. These issues were only aggravated because of the collapse of Three Arrows Capital, Celsius, and TerraUSD stablecoin.
However, while these companies experience a collapse, a lot can be learned about Ethereum NFT Sales At GameStop Outperform Coinbase NT In Just 2 Days, despite the drop in the cryptocurrency market.
As Bitcoin prices dipped from its $69,000 record high, mining stocks took the worst hit as the price hit $18,000 last month. The plunge has caused several market analysts to declare a crypto winter with an estimated $2 trillion market value of Bitcoin erased. Remarkably, even Elon Musk is skeptical as he revealed that Tesla has stopped receiving Bitcoin as payment for its car. Besides this, the company has also sold most of its Bitcoin due to recent market conditions.
Nevertheless, this hasn’t deterred some traders as they amass everything possible as Bitcoin tries to recover. In July, the $7.4 million Viridi Bitcoin Miners ETF experienced a 22 percent increase, making it the top performing US traded fund.
On the other hand, Stronghold Digital Mining surged by 79 percent within the same month. On Wednesday, trading volume for these miners increased to 100 million shares, amounting to over 70% of total trading volume since the company went public last year.