Bitcoin (BTC-USD) is on fire right now, and it’s driving a panoply of cryptocurrency stocks along for the ride. Several stocks are up right now, starting with Microstrategy (NASDAQ:MSTR), up nearly 12.5% at one point in Tuesday afternoon’s trading. Not far behind was Marathon Digital (NASDAQ:MARA), up 12%, and Riot Platforms (NASDAQ:RIOT) up just shy of 10%. Also joining the upward progression was Hut 8 Mining (NASDAQ:HUT) at just over 8%, and Coinbase (NASDAQ:COIN), the leader in crypto exchanges, at just over 7%.
Bitcoin managed to hit $34,596.40 per coin, one of the highest levels seen since May 2022. It’s up a whopping 20% over the last five days. So what set Bitcoin off? Several possibilities exist, starting with the increasing likelihood that a Bitcoin exchange-traded fund (ETF) will finally materialize. With it, institutional investors will finally have the access to the market they’ve long been looking for. Not having to deal with exchanges that aren’t exactly well-regulated certainly doesn’t hurt either, at least as far as institutional investors are concerned.
But that’s far from the only potential catalyst sending Bitcoin, and crypto stocks, up. While certainly, the Securities and Exchange Commission getting out of the way is a big factor, some are considering the possibility of Chinese capital outflows as a potential catalyst. Recent geopolitical destabilization—represented particularly by the Israel-Hamas war—might be making some look to crypto as a “safe haven” asset. There are also some issues in Argentina, where inflation hit around 124% back in late September, prompting concerns about hyperinflation.
Which Bitcoin Stocks are a Good Buy Right Now?
Turning to Wall Street, the current laggard right now is COIN stock. Its average price target of $84.20 means that this Hold-rated stock only offers 1.65% upside potential. However, RIOT stock, a Strong Buy, offers 55.15% upside potential against a $16.50 average price target.
