Crypto Stocks Surge Amid US Stock Market Rebound
April 10, 2023 | By Ciaran Lyons
In a notable turn of events, cryptocurrency-related stocks witnessed significant gains on April 9, 2023, coinciding with a remarkable rebound in the U.S. stock market. The S&P 500 index achieved its third-largest single-day gain since World War II, closing the trading day up 9.52%. This surge came as a result of factors including a pivotal announcement regarding tariffs by former President Donald Trump.
Major Gains in Crypto Stocks
Among those impacted by this surge were key players in the cryptocurrency sector. Michael Saylor’s company, Strategy (formerly known as MicroStrategy), saw its stock rise by an impressive 24.76%, ending the day valued at $296.86. Similarly, the cryptocurrency exchange Coinbase (COIN) gained 17%, closing at $177.09. The crypto mining sector also reported substantial gains. Notable increases included MARA Holdings (MARA), which rose by 17%, Cipher Platforms (CIFR) up 16.59%, and Riot Platforms (RIOT) climbing 12.77%.
Most of the gains in these crypto stocks, alongside the broader U.S. market recovery, materialized during the final three hours of trading. This upturn was reportedly triggered by an afternoon post from Trump on his social media platform, Truth Social. In this post, Trump announced a 90-day pause on his global “reciprocal tariffs,” adjusting the tariff rate to 10% for countries other than China, which saw an increase to 125% due to its counter-tariffs against the U.S.
Insights from the Market
The S&P 500’s remarkable rise attracted considerable market attention as it reflected broader investor sentiment. The Nasdaq 100 mirrored this positive momentum, recording a 12.02% gain over the same trading period.
Conversely, the U.S. stock market’s prior volatility was amplified earlier in April when the market faced losses amounting to $3.25 trillion. This figure was significantly greater than the entire valuation of the cryptocurrency market at that time, which stood at approximately $2.68 trillion. Trump’s initial tariff announcements in February had already shaken markets, leading to a downturn in major assets, including Bitcoin.
Bitcoin’s Upward Trend
In parallel, Bitcoin (BTC) also saw a positive shift, trading 7.52% higher than the previous day at $82,065, as reported by CoinMarketCap data at the time of publication. This uptick illustrates the interconnectedness of traditional and cryptocurrency markets, where influential political and economic statements can swiftly alter investor sentiment and market direction.
As trading continues into mid-April, Asian markets reflected the bullish trend set by U.S. equities, with Australia’s ASX 200 index rising 4.55% and Japan’s Nikkei 225 opening nearly 10% higher.
Conclusion
This surge in crypto stocks highlights the volatile yet dynamic nature of both the stock and cryptocurrency markets. Investors are advised to exercise caution and conduct thorough research before making informed trading or investment decisions, particularly in light of the recent turbulence caused by policy announcements and geopolitical factors.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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