Companies on Wall Street that have exposure to the cryptocurrency market recorded gains on Tuesday, as the price of numerous cryptocurrencies, such as Bitcoin and Ethereum, rose.
Crypto prices rise
According to CoinMarketCap, the MATIC token of Polygon was leading the charge in cryptocurrencies today, as it recorded a gain of 22% for the day. At the time of writing, there had been a 10.5% rise in the price of Ethereum in the last 24 hours, as it reached close to $1,500. This brought its weekly gains to more than 30%.
Bitcoin also recorded an increase of almost 5% in the last 24 hours, which brought it close to a value of $23,000. This came as a major shift in the crypto market, which has otherwise been quite bleak for both investors and traders. Both leading cryptocurrencies i.e. Bitcoin and Ethereum have plunged 70% from their all-time high values, as the threat of an economic recession and worsening macroeconomic conditions have eroded risk appetite.
It appears that the risk appetite has awakened today, even if it is temporary.
Public companies benefit
Digital asset technology firm Marathon Digital Holdings Inc., which is publicly traded, saw its stock price rise, thanks to the overall boost in the cryptocurrency market. The crypto mining company saw its share price go up by 22%, as it went from $8.83 to $9.82 and the trading volume also tripled from its daily average.
There was a 9% increase in Coinbase’s shares for the day, as they rose to $59, even though the company announced that it was putting an end to its influencer marketing program because of the bear market conditions.
In the last 24 hours, Ethereum contributed about 30% of the trading volume on the Coinbase exchange, and Bitcoin trades made up about 20% of them. Coinbase is one of the several companies in the sector that are currently dealing with financial headwinds because of a decline in crypto prices.
Amongst other companies that are also traded publicly, Coinbase and Robinhood are the ones that have announced layoffs in this year. Last month, Coinbase announced that it was cutting down its staff by 18%.
Having a total of 129,699 bitcoins, MicroStrategy Inc. also saw a 6% rise in its share price for the day. While the software manufacturer saw its share price reach $246.55 earlier, it later declined to a value of $227. A recent tweet from chief executive Michael Saylor disclosed that they have spent about $4 billion in accumulating bitcoins.
Bit Digital Inc. was also another firm that saw its stock price record a gain of 5%. The bitcoin mining company’s share price rose to $1.70. There was a 12% surge in the shares of Riot Blockchain, also focused on bitcoin mining, and its share price reached $6.24. The company recently shut down its Texas operations because of a heat wave and ended up selling more bitcoin in May than it had produced. Robinhood Markets Inc. also saw gains of 2% that took its stock price to $8.60.