According to Bloomberg, in recent days, the US stock market has witnessed a strong recovery in many areas, including the group of crypto companies.
Specifically, in the last 10 days, retail investors have bought more than 1 billion USD in shares of blockchain companies, according to a report by VandaTrack. This makes Marathon Digital, Holdings Inc, Coinbase Global Inc and Riot Blockchain Inc the most bought assets on the Fidelity platform last week.
Ed Moya, a market analyst at Oanda Corp, thinks this is due to the participation of “retail” investors.
“People have been waiting for one last drop in Bitcoin but now that the price is recovering and the risk appetite, the risk appetite of Wall Street investors is increasing.”, Ed Moya identify.
Thanks to the rally, the sector’s shares posted their biggest gains since February 2021. Marathon Digtal has rallied 133% in Riot Blockchain, Silvergate Capital Corp and Coinbase have rallied at least 50% in the past month alone.
Despite the July rally, crypto-related companies have been among the biggest losers this year. The tightening monetary policy of the Fed, the US Federal Reserve this year keeps investors away from risky assets. The collapse of the UST or the bankruptcy of major institutions such as Celsius Network and Three Arrows Capital only aggravated the situation.
Stocks of cryptocurrency miners were also hit hard as Bitcoin’s price dropped from a peak of $69,000 to a two-and-a-half year low of $18,000 last month. Bitcoin’s plunge has led many analysts to declare a “crypto winter” when $2 trillion has been blown to the crypto market.
Even some of the big names in the industry have turned their backs on crypto. On Wednesday (July 20), Tesla, the company of billionaire Elon Musk, said it had sold most of the Bitcoin it bought in the last quarter.
However, all this did not discourage traders. As soon as Bitcoin made a comeback earlier this month, crowds flocked to the stocks in the industry, especially the cryptocurrency mining block.
“When a stock breaks out of its trading range for the past few months into growth, the rally will usually last several weeks,” said Matt Maley, strategist at Miller Tabak.