Crypto stocks rally as bitcoin surges above $21,000

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Yahoo Finance Lives Jared Blikre explains how crypto stocks trade.

Video transcript

[AUDIO LOGO]

BRAD SMITH: Welcome back to “Yahoo Finance Live”. Looking at the major US averages this morning, we are down across the board. Flat on the S&P 500. We’ll continue to watch that. In fact, for more on today’s tape, let’s skip straight to Jared Blikre at YFi Interactive. Jared.

JARED BLIKRE: Yeah, good to be back here. And we have a mixed market. But for the most part, we are seeing bearish action. The Dow was down nearly half a percent. The NASDAQ fell a little. And you can see the S&P 500 trying to flash a little green there.

I want to take a look at the sector action for today. And we see the energy in the foreground. That’s up more than 1%. Other big movers, communication services down. This is home to Meta, Verizon, Disney, a hodgepodge of various communications companies. Commodities take second place, followed by utilities, then consumer discretionary. Interesting consumer mix here.

Let’s take a look at the financials since we got the Goldman Sachs and Morgan Stanley earnings we talked about this morning. Goldman Sachs access fees.

But I want to spend some time focusing on bitcoin. This will be a year-to-date chart of our leaders and our sentiment index. Lots of green here. It is very good. It’s the risk. And that’s what you want to see, a large turnout, including junk, certainly junk, at this gathering. But BITO is a Bitcoin ETF that I use as a proxy. It’s number one. That’s up 28%.

Let me move on to our crypto– let me see. Here we are. –our crypto heatmap here and plotting the price action in bitcoin. The fact that he managed to reclaim the $20,000 price level is huge. It was the stumbling block earlier in 2019, 2017, and actually it was right before this chart started. So if Bitcoin is able to hold $20,000, that key technical level, that’s the very first step – a first step in a rally here.

But we can see that there was a staggered stage of lower lows and lower highs – lower lows and lower highs all the way to the end. So that would be – if it could actually clear around $22,000, that would be a little better. But the price action is impressive. I think it’s going to be critical to watch what’s happening around the inflation data with bitcoin because the Federal Reserve, when we see these big press conferences, guess what’s the biggest driver? It tends to be Bitcoin. So as a leading indicator, what else would you guys like to watch here.

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