Bitcoin climbs to multi-week high, pushing crypto-exposed stocks higher

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After a slow start to 2023, bitcoin (BTC-USD) firmly broke above a key technical level in Monday afternoon trading. So, cryptocurrency-related stocks saw huge gains as traders anticipate a number of catalysts this week that could drive price volatility.

Bitcoin (BTC-USD) rose 2.5% to $17.53K as of 12:57 p.m. ET, hitting the highest level seen since mid-December, and ethereum (ETH-USD) hit a similar milestone , climbing 6.1% to $1.34,000.

The rises boosted buying pressure on crypto-exposed stocks. Greenidge Generation Holdings (NASDAQ:GREE) +45.6%, Bitfarms (NASDAQ:BITF) +35.1%, Bit Digital (NASDAQ:BTBT) +29.1%, Marathon Digital Holdings (NASDAQ:MARA) +24, 2%, Hut 8 Mining (NASDAQ:HUT) +23%, HIVE Blockchain Technologies +22.3% and Riot Blockchain Inc (NASDAQ:RIOT) +19.2% were among the biggest intraday gainers.

Crypto exchange Coinbase Global (NASDAQ:COIN) also saw its stock spread rise 16.3% as Jefferies expects the company to weather the fallout from failing rival FTX (FTT-USD) longer term.

With bank earnings, inflation data and Federal Reserve chief Jerome Powell’s remarks in the spotlight this week, all three major US indices were in the green, with Dow Jones up 0.5% , S&P 500 +1% and the technology-heavy Nasdaq +1.9%. The gains also come on the heels of an encouraging nonfarm payrolls report that showed lower-than-expected wages and slowing job growth. Cryptos generally rise during days when the stock market is rising and vice versa, although there have been a range of exceptions, especially during periods of low crypto volatility.

The buying pressure seen on cryptos and stocks (and bonds for that matter) has sparked speculation over whether bitcoin (BTC-USD) is showing signs of bottoming out, as the contributor explained. from Seeking Alpha, Bing Ventures.

The crypto market has had one of the worst years in its short history, with digital asset funds seeing inflows drop 95% in 2022.

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