Volatility, you name it, cryptocurrency. And crypto stocks, to a lesser extent. As trading closed on Wednesday, we found a wide variety of crypto stocks, from Coinbase (NASDAQ:COIN) and Riot Platform (NASDAQ:RIOT) to Marathon Digital (NASDAQ:MARA) and Microstrategy (NASDAQ:MSTR) all closed higher. The reason for this widespread gain? Bitcoin (BTC-USD) cleared $30,000 per coin for the first time since late April.
The good news for Bitcoin HODLers is that traditional financial giants are re-entering the market, possibly after Federal Reserve Chairman Jerome Powell hinted that rate hikes (which paused in the most recent trading session) may return in the coming trading sessions to further combat inflationary pressures. This has provided some additional fuel for the cryptocurrency as BlackRock (NYSE: BLK) is still looking to establish a Bitcoin exchange-traded fund (ETF) in the United States.
It’s no surprise, then, that some of the stocks most closely associated with cryptocurrencies, especially Bitcoin, have seen a bump in performance as a result. Microstrategy is well known for its Bitcoin holdings and for the way its stock price fluctuates based on the volatility of Bitcoin pricing. Coinbase remains one of the leaders, if not the true leader, of cryptocurrency exchanges. Marathon Digital recently entered EDX Markets, a new cryptocurrency exchange that offers support from a range of Wall Street firms. Riot Blockchain, which mines Bitcoin, is largely self-explanatory as to why it has gained.
All four stocks closed higher, albeit to varying degrees. Marathon Digital Holdings shares are a Strong Buy by the analyst consensus, offering the most upside potential and the second-highest gain among the four. The average price target, $14.75, offers investors a 20.8% upside potential. Meanwhile, Coinbase stock, the smallest gainer today, only offers 1.29% upside potential with its $58.85 average price target.