Bitcoin hits a new all-time high, surpassing $111,000.
Many cryptocurrency-related stocks may benefit in the short term from a rise in Bitcoin.
But are all these stocks still good investments?
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After months of waiting, Bitcoin has finally reached new record highs, reaching around $111,900.
BTC/USD first reached a high of $109,874 in the late afternoon, then dropped to $106,200 an hour later, before rising again to reach a new high of the day.
Many analysts believe this sudden rise is due to growing concerns about the US dollar and government debt. Last Friday, Moody's downgraded the United States' credit rating, sparking a wave of market skepticism.
With President Donald Trump pushing for massive spending and tax cuts, there's little hope the situation will improve anytime soon.
This uncertainty is reflected in rising US interest rates and a falling dollar index—a rare combination that signals declining confidence in the US economy.
So, Bitcoin is rising not because investors are feeling hopeful, but because the current instability makes it look like a safe haven asset. More companies are now treating Bitcoin as a long-term store of value and adding it to their balance sheets.
4 Cryptocurrency Stocks to Watch
However, the cautious tone in the broader stock market is unlikely to prevent many crypto-related stocks from reacting positively to Bitcoin's new all-time high during Thursday's session.
Strategic (NASDAQ:MSTR), Coinbase (NASDAQ:COIN), Riot Platforms (NASDAQ:RIOT), and Marathon Digital (NASDAQ:MARA) all posted gains in after-hours trading on Wednesday and will be worth watching closely on Thursday.
However, these stocks aren't necessarily the best picks in the technology sector right now. In fact, we've compiled them on an InvestingPro watchlist, which currently shows mixed expectations.
Crypto stocks
In fact, according to InvestingPro's fair value estimate — which combines several well-known financial models — most of these stocks appear overvalued, with the exception of Riot Platforms.
For example, Coinbase is currently overvalued by approximately 25% based on a fair value estimate.
Meanwhile, Marathon Digital, Riot Platforms, and MicroStrategy all have below-average health scores.
On the brighter side, analyst price targets indicate strong upside potential for Riot Platforms (+69.7%) and MicroStrategy (+38.3%).
Overall, while these stocks provide a way to gain exposure to Bitcoin through the stock market, investors should keep in mind that exchange-traded funds now offer a more direct route—and they may want to explore other opportunities in the technology sector as well.
May's tech stock picks shine from this AI
In this context, it's worth noting that InvestingPro subscribers have already seen strong gains this month from several of the technology stocks highlighted in the May issue of the Tech Titans Strategy, run by Investing.com.
In fact, of the 15 stocks tracked by this strategy since the beginning of the month, 13 have gained over the past three weeks, while the two that declined have recorded only minor losses.
Additionally, at least six stocks in the portfolio have posted double-digit gains since the beginning of the month: +10.3%, 10.5%, 15.3%, 18.9%, 20.3%, and 28.9%.
However, many of the stocks identified earlier this month in the Tech Titans strategy still show strong upside potential heading into the final days of the month.
Then, on June 1, the strategy will re-evaluate an updated list of stocks for the new month - some will be removed from the portfolio, while new ones will be added.
It's also worth noting that May isn't the first month the tech workforce strategy has significantly outperformed the market, as its historical performance clearly demonstrates:
Tech giants' performance
Also note that the Tech Titans strategy is available to InvestingPro subscribers along with over 30 other thematic and regional strategies, all managed by Investing.com.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel, or recommendation to invest as such, nor is it intended to encourage the purchase of assets in any way. I would like to remind you that any type of asset, evaluated from multiple perspectives, carries significant risk. Therefore, any investment decision and the associated risks remain the investor's responsibility.
