Crypto names left for dead roar higher as Bitcoin rebounds

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With almost the entire universe of publicly traded crypto stocks down 70% to 90% or even more in 2022, just a little bit of life in bitcoin (BTC) this week has led to outsized sector gains.

Trading at $19,370 at press time, bitcoin is up around 13% this week, to its highest level in more than two months since the implosion of crypto exchange FTX.

Among the big movers this week is Coinbase (COIN), up 49%. The crypto exchange saw a number of sell-side downgrades and price target reductions to start the year and also faced a credit rating downgrade from Moody’s. The company also announced this week a 20% reduction in its workforce. Cathie Wood’s ARK investment, however, has been bottoming out, buying $7.5 million worth of Coinbase stock this week and around $28.5 million over the past month.

(TradingView)

Thanks to the combination of a low bitcoin price, rising electricity costs, often high levels of debt and nearly closed capital markets, bitcoin miners entered 2023 facing an existential crisis. . Indeed, Core Scientific (CORZ), one of the biggest miners in computing power, has already declared bankruptcy and Argo Blockchain (ARBK) has barely postponed Chapter 11 after a late-inning bailout of Galaxy Digital from Michael Novogratz (GLXY.TO).

Things got so bad that one of Riot Blockchain’s top miners started the year by exorcising all crypto ties from its name, renaming itself Riot Platforms (RIOT).

Given these factors, only the modest good news for bitcoin sent shares of the sector skyrocketing. Marathon Digital (MARA) gained 79% this week, Hut 8 Mining (HUT) gained 49% and Bit Digital rose 41%. As for Riot, it’s only 27% ahead this week, perhaps a punishment for dropping blockchain in its name.

Other crypto stocks on the move include MicroStrategy (MSTR), which is up 30% this week, and struggling crypto bank Silvergate Capital (SI) which is up 11%.

Read more: Bitcoin Miner Bitfarms Warns of Default, Considers Modifying BlockFi Loan

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