Shares in cryptocurrency-exposed stocks rose on Tuesday, as Bitcoin surged above $30,000 for the first time since June 2022.
Crypto miners Riot Platforms (NASDAQ:RIOT) and Marathon Digital Holdings Inc (NASDAQ:MARA), as well as Bitcoin investor MicroStrategy Incorporated (NASDAQ:MSTR) and digital coin exchange platform Coinbase Global Inc (NASDAQ:COIN) all gained more than 2% in premarket U.S. trading.
The world’s largest cryptocurrency was 6.16% higher at $30,052.3 by 08:28 ET (investing.com/crypto/bitcoin12:28 GMT), while peers Ethereum, Binance Coin and Ripple also jumped. The moves helped lift the total crypto market capitalization to $1.4 trillion.
Bitcoin has increased by roughly 80% this year, far outperforming other asset classes. Its latest rally comes amid a broader improvement in sentiment as markets began pricing in the potential for a limited number of interest rate hikes by the Fed in the coming months, especially as the U.S. economy cools further.
A less hawkish Fed bodes well for Bitcoin and other cryptocurrencies after a sharp uptick in borrowing costs wiped out over two-thirds of the crypto market’s total capitalization last year.
Meanwhile, Bitcoin has been on a tear over the past month, as the token attracted some safe haven plays due to concerns over a broader collapse in the financial services industry.
