Cryptocurrency stocks surged after a sudden rise in Bitcoin (BTC-USD) prices. The rising cryptocurrency values sent Grayscale Bitcoin (NASDAQ:GBTC) blasting up over 6% in Monday afternoon’s trading, and it was hardly alone. Coinbase (NASDAQ:COIN) was up fractionally, and Microstrategy (NASDAQ:MSTR) added significantly. Meanwhile, both Invesco (NYSE:IVZ) and WisdomTree (NYSE:WT) gained over 2% in Monday afternoon’s trading.
The biggest reason for the gains was that the Securities and Exchange Commission (SEC), having fought tooth and nail against a Bitcoin exchange-traded fund (ETF) for years now, is pretty much out of ammunition in this fight and will ultimately have to approve its existence. That alone was enough to offer hope to the diamond-handed HODLer everywhere, but some analysts caution that the rise will not be linear. There will still be “speed bumps” along the way, some note.
Meanwhile, it doesn’t hurt matters that Bitcoin is being increasingly regarded as a “safe haven” trade. Some analysts here point to Bitcoin’s built-in scarcity mechanisms, as well as the inherent difficulty of trying to manipulate pricing on Bitcoin the way it can be done for silver and gold trading. Market manipulation of precious metals has long been a concern of gold bugs, and Bitcoin simply doesn’t have that issue. One even believed that built-in scarcity plus the resistance to manipulation would make Bitcoin more likely to outpace gold in the next 10 years.
Which Cryptocurrency Stock is a Good Investment?
Turning to Wall Street, MSTR stock is currently the leader in terms of Wall Street expectations. This Moderate Buy-rated stock has a price target of $433.25, which means an upside potential of 34.25%. Meanwhile, COIN stock offers the least upside, as it offers 15.38% upside potential thanks to its average price target of $85.50.
