Since its all-time lows, the share price of cryptocurrency exchange Coinbase has increased by 69%. Other crypto stocks, such as business analytics firm MicroStrategy, have seen similar increases, and since the beginning of 2023, all of the candles have been green.
For Coinbase management, the soaring share price will likely be followed by a great breath of relief after a difficult 2022 that saw it lay off 20% of its workers and opt to close its Japanese business. Despite the increase, COIN is still over 84% behind its record high.
Coinbase's share price dropped to $31.95 on Jan. 6 before soaring to $54.14 at the end of trading on Jan. 17.
Other crypto stocks, including MicroStrategy and digital payments provider Block Inc., have also seen significant rises in the new year.
MicroStrategy's share price has climbed to nearly $236 from a low of just over $135 on Dec. 29 - a 74% increase - while Jack Dorsey's Block's share price has increased by a modest but still impressive 27% from a low of under $59 on Dec. 28 to over $75.
Crypto exchange-traded funds (ETFs) have also recovered to a lesser extent, with the Valkyrie Bitcoin Miners ETF (WGMI) more than doubling its price from a low of little over $4 on DeC. 28 to more than $8.
The price of the ProShares Bitcoin Strategy ETF (BITO) increased by slightly under a third from over $10 on December 28 to its current level of over $13.
Even Grayscale Bitcoin Trust, which increased by 51% from a low of $7.76 on Dec. 28 to its current price of $11.72, has been able to recoup some of its 2022 losses.
For stocks related to cryptocurrency mining, the recovery has been even more notable. During the first two weeks of the year, Bitfarms and Marathon Digital Holdings saw increases of 140% and 120%, respectively.
While the recent spike in crypto-related stocks will undoubtedly be a tremendous comfort to those who have invested in them, it is important to note that many of these companies still have a long way to go before returning to their all-time highs.
Some analysts believe Bitcoin, in particular, has skyrocketed as a result of the positive inflation figures released by the United States on Jan. 12 - BTC has increased in price by more than 17% since then - but it is worth noting that Dec. 28 appeared to represent a market bottom across many cryptocurrencies and stocks.
