Coinbase (COIN) and MicroStrategy (MSTR) have emerged among the top-traded stocks, joining Tesla (TSLA) and Nvidia (NVDA) in the spotlight. Both crypto-related stocks gained over 18%, indicating increased investor interest in digital assets. Meanwhile, tech giants Apple, Microsoft, and Meta each dropped more than 1%, suggesting some investors may be shifting focus away from traditional tech.
Tesla rose by 10.99%, generating $30.39 billion in trading volume, reflecting strong investor confidence in the electric vehicle giant. However, Nvidia, which is leading the artificial intelligence business, saw its stock price decrease by 1.44%, indicating that the circuit board might be considered a semiconductor, nevertheless a warning sign for the chip industry.
Also Read: MicroStrategy Boosts Bitcoin Holdings with $2.03 Billion Purchase as BTC Hits New High
Bitcoin’s Rally Fuels Rising Crypto Enthusiasm
Bitcoin surged to $88,550, achieving a 6% gain within 24 hours, supported by a trading volume of over $97 billion. Bitcoin’s market cap has risen to $1.67 trillion, and its share of the overall cryptocurrency market rose to 58.31%. This has boosted the futures trading volume by 40.5% while liquidation surged by 35.75%, proving more action and investors’ risk-taking propensity in the market.
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Source: Coinglass
Bitcoin fundamentals are sound, as all current participants within the Bitcoin network are making a profit. Over $159 billion has been recorded to have been transacted over the last week regarding large transactions. Moreover, exchanges registered outflow amounting to $671 million and lend credence to the fact that there is a steady inclination to hold these despite increasing institutional and retail demand.
Divergence Between Tech and Crypto Markets
The rally in crypto stocks highlights a notable contrast with traditional tech, as Apple, Microsoft, and Meta’s declines suggest some consolidation within the sector. Furthermore, gold fell by 0.38 percent, a measure of a move to risk an asset. The Crypto Fear & Greed Index is now at 76, remarkably cautious optimism. At the same time, fluctuations in funding rates suggest that such fluctuations may hold a high trend in the volatility stratosphere.
Source: IntoTheBlock
As traditional tech consolidates, the sustained momentum in crypto markets hints at a potential shift in investor sentiment. With Bitcoin’s strong upward trend, the market watches closely to see if the bullish sentiment in digital assets will continue.
Also Read: Jeremy Hogan Foresees Major Changes in SEC Crypto Cases as Gensler’s Tenure May End by 2025
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.