Yesterday evening, the price of Bitcoin reached a near 21-month high, inspiring a strong opening performance for its related concept stocks. However, as the momentum of Bitcoin’s rise could not be sustained, the related concept stocks also fell.
After the opening of the US stock market yesterday (11), the US Bitcoin spot ETF officially began trading. Bitcoin, contrary to the weak trend following the release of the news, surged to nearly $49,000 around 22:15 in the evening, reaching its highest point since December 2021.
As a result of this inspiring news, the performance of Bitcoin concept stocks was also impressive at the opening. Bitcoin mining machine manufacturer Canaan Inc. rose more than 14%, and Bitcoin mining companies Marathon Digital and Riot Platforms rose nearly 7%.
In addition, MicroStrategy, which holds the highest amount of Bitcoin reserves among listed companies, also rose nearly 6% at the opening.
However, after Bitcoin surged to nearly $49,000, the upward momentum could not be sustained. Bitcoin plummeted by $3,000 within an hour and fell below $46,000. At the time of writing, it is trading at $46,208, a decrease of 0.19% in the past 24 hours.
The trend of Bitcoin rising at the opening of the US stock trading session and then falling is very similar to the performance of Bitcoin concept stocks. Canaan Inc., Marathon Digital, Riot Platforms, and MicroStrategy all ended the day with respective declines of -0.46%, -12.6%, -15.82%, and -5.21%.
Before the official approval of the Bitcoin spot ETF, investors were generally concerned whether this event would be a “sell the news” situation and whether it would lead to increased volatility in Bitcoin prices. However, from the current trend of Bitcoin, it is not clearly a “sell the news” event. Bitcoin is still in a relatively stable range-bound oscillation. The rapid decline after yesterday’s surge was only 4.53% and did not see significant volatility.
Furthermore, driven by the optimistic expectations of the market for the approval of the Bitcoin spot ETF, Bitcoin concept stocks have already shown impressive performances, even surpassing the price increase of Bitcoin itself. This may be partly because institutional investors could only invest in Bitcoin concept stocks before the emergence of legal Bitcoin investment tools. With the official approval of the spot ETF, investors are closely monitoring the trend of Bitcoin itself to decide whether to sell these concept stocks for profit. Therefore, we witnessed a very similar price movement between Bitcoin and its related concept stocks yesterday.