Leading digital asset Bitcoin hit $30K for the first time in almost a year amid prevalent gains in crypto stocks.
Crypto stocks are rising, with players Marathon Digital Holdings (NASDAQ: MARA) and Riot Platforms (NASDAQ: RIOT) leading gains. The duo is trading up at 11% and 15%, respectively, with prominent coin Bitcoin (BTC) also changing hands at $30K. As it stands, BTC price is up by more than 80% so far this year.
Besides MARA and RIOT, other smaller crypto stocks also experienced significant gains on the second day of value ascent. These include Stronghold Digital Mining (NASDAQ: SDIG) and Iris Energy (NASDAQ: IREN), up approximately 20%.
Galaxy’s Michael Novogratz Comments on Crypto Stock Gains & Rally
Bitcoin’s price upswing over the past two days also induced a 7% price increase in crypto merchant bank Galaxy Digital (TSE: GLXY). Yesterday, Galaxy’s chief executive Michael Novogratz weighed in on the latest digital currency rally and outperformance of other asset classes. According to him, the current rally is not due to an influx of new money but comes from the re-emergence of long-standing crypto enthusiasts. In Novogratz’s opinion, these crypto enthusiasts are moving back into the market following the sharp decline of digital assets last year. As the Galaxy Digital CEO put it:
“This crypto rally has been built on the backs of the crypto community. It’s not been new money … it’s not been pension funds and asset managers coming in. It really was retail driven.”
Novogratz also pointed out that “some new people” are joining the crypto space, increasing Galaxy’s business. He also explained that the collapse of notable “competitors” such as FTX funneled several established crypto investors into the remaining establishments.
In broader terms, Novogratz described the ongoing crypto rally as a nod to trader speculation regarding the Fed’s fiscal policy slowdown. Put another way, the CEO pointed out that BTC plummeted in 2022 due to the central bank’s aggressive rate tightening. Novogratz also added that a looming US credit crunch also impacted crypto prices.
Lastly, Novogratz ascribed the latest crypto bullishness to aggressive moves to set up regulatory frameworks in the Middle East and the Far East. These include Abu Dhabi, Dubai, and Hong Kong. Elsewhere, the Galaxy CEO acknowledged the growth of Ethereum (ETH) as a “vibrant community” safer than other altcoins. “I don’t see a big sell-off in Ethereum coming,” Novogratz concluded.
Bitcoin on A Tear
Bitcoin broke above the $30K threshold for the first time since June 2022. BTC traded as high as $30,237 in the last 24 hours. It started the new year at $16,500, gained more than 80% in 2023, and is rising. As Banxa US CEO and chief legal officer, Richard Mico put it:
“Bitcoin has been the best-performing asset of 2023… It’s difficult to make predictions given the volatility of late, but I wouldn’t be surprised if this momentum regarding BTC continues.”
Mico also added that the prospect of de-dollarization is further accelerating Bitcoin adoption. The leading crypto also drew some safe haven plays over concerns regarding a collapse in the banking industry.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.