Crypto Stocks Are Massively Outperforming Regular Stocks
Now heading towards $90,000, Bitcoin's meteoric rise since Donald Trump's re-election has spilt over to the stock market, where crypto-related companies are sharing in the elation and reflective share price surge.
Over the week, crypto exchange Coinbase has seen this stock price jump more than 74%. Still shy of its IPO price of $381, Coinbase's current share price of $324.25 is still its highest since 2021.
Crypto miners Riot Platforms and Marathon Digital have also enjoyed significant gains over the same period, rising more than 63% and 56% respectively.
Somewhat surprisingly, Bitcoin bulls MicroStrategy, which bought another $2 billion worth of Bitcoin yesterday, has only seen its share price rise slightly more than 45% (we say "slightly" only compared to Coinbase and crypto miners).
MicroStrategy has acquired 27,200 BTC for ~$2.03 billion at ~$74,463 per #bitcoin and has achieved BTC Yield of 7.3% QTD and 26.4% YTD. As of 11/10/2024, we hodl 279,420 $BTC acquired for ~$11.9 billion at ~$42,692 per bitcoin. $MSTR https://t.co/uCt8nNUVqd
— Michael Saylor⚡️ (@saylor) November 11, 2024
In contrast, blue chip stocks and the overall US stock market have failed to match the performance of crypto related stocks. Everyone's tech favourite NVIDIA, which is up almost 200% from one year ago, has only risen around 5.7% over the week. The Nasdaq Composite hasn't faired much better either, showing a similar gain over the same period.
The S&P 500 has performed even worse with a gain of just 4.9% over the week, despite Trump's BFF, Elon Musk, witnessing Tesla surging more than 41%.
Even Dogecoin, which has skyrocketed 24% in the last 24 hours and surged by an astonishing 120% over the past week, has overtaken a number of companies in terms of market cap.
With a current market cap of $53.3 billion, Dogecoin is technically the 428th largest company in the world, surpassing the market value of well-known global firms like Volkswagen, Ford, Adidas and Lululemon.
Although Trump has yet to take on the Presidency role or even roll out any legislation, his campaign pledge of being the "Crypto President" seems to be enough to fuel the crypto market.
It's worth noting that crypto and related stock prices might be significantly outperforming their traditional stock counterparts but the markets on the whole are regarded as healthy. So far, Trump seems to be good for business (even though he's not even president yet).