Bloomberg Analyst Spotlights MSTR, COIN Domination Over AAPL, MSFT, AMZN, META

by

As a seasoned crypto investor with over two decades of experience in the stock market, I must admit that the recent performance of MicroStrategy (MSTR) and Coinbase (COIN) has left me utterly astounded. To see these crypto stocks outperforming tech giants like Apple, Microsoft, Amazon, and Meta Platforms not just once, but consistently, is a testament to the transformative power of digital assets in our world today.

Following Donald Trump’s election win last week, there’s been a flurry of activity on Wall Street. Notably, stocks associated with cryptocurrency, such as MicroStrategy (MSTR) and Coinbase (COIN), have seen a significant surge recently. In fact, on Monday alone, the trading volumes for these two crypto stocks surpassed some of tech’s heavyweights like Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META), which are collectively known as the ‘Magnificent 7’.

How MSTR and COIN Dominated the Tech Giants?

Yesterday, I observed an impressive surge in trading activity within my crypto portfolio as the “Bitcoin Business Sector,” encompassing Bitcoin ETFs, MicroStrategy (MSTR), and Coinbase (COIN), collectively reached a whopping $38 billion in daily trades.

Significantly, one exchange-traded fund (ETF) managed by BlackRock, specifically IBIT, traded a massive $4.5 billion in volume during the week, signaling robust inflows. Analyst Balchunas referred to this day as historically significant, even proposing a fitting nickname like “Volumageddon.

MicroStrategy’s shares held a top-three position among all U.S. equities, trailing only Tesla and NVIDIA in terms of daily trading volumes, amounting to $15.7 billion. On November 11, Monday, the price of MicroStrategy’s shares jumped by 69 points, concluding the day at $340 – a new record high – following a significant increase after approximately 25 years.

The stock of MSTR is expected to join the S&P 500 index shortly, potentially drawing in an extra $10 billion in investments. This could push its value up to around $500. Since Donald Trump’s election win, the MicroStrategy share price has already risen by approximately 45% over the past five trading days.

On Monday, MicroStrategy disclosed its acquisition of 27,200 Bitcoins, valued over $2 billion. This transaction took place with an average cost of approximately $74,463 per Bitcoin between October 31 and November 10. Since then, the Bitcoin price has risen by about 20% from its purchase price.

In a recent comparison, the cryptocurrency trading platform Coinbase (NASDAQ: COIN) ranked fourth in trading volumes with approximately $13.5 billion, trailing behind MSTR. Meanwhile, Bitcoin miner Marathon Digital reported about $3 billion in trading volumes. Interestingly, since Donald Trump’s election victory, the price of Coinbase stock has surged an impressive 75% over five trading sessions and is now approaching a three-year high at $324.

Here is a screenshot for the history books $MSTR w/ $15.7 BILLION trading volume & #3 of all equities$COIN at #4 w/ $13.5 Billion and $MARA w/ $3 Billion.

— HODL15Capital (@HODL15Capital) November 11, 2024

Bitcoin ETF Strong Demand Continues

On Monday, there was over $1.1 billion poured into Bitcoin ETFs, and these nine ETFs collectively acquired approximately 13,940 Bitcoins in a day. Once again, BlackRock’s IBIT led the way with approximately $750 million in new investments.

This data indicates a massive ongoing interest in Bitcoin Spot ETFs, as total investments since their launch have now reached an impressive $27 billion, according to CoinShares’ latest blog post on Monday.

Over the past few months, Bitcoin has seen an influx of approximately $1.8 billion, pushing the total to around $9 billion since the U.S. Federal Reserve reduced interest rates for the first time this cycle in September. This increase in investment seems to be driven by positive economic conditions and changes within the American political sphere.

Read More

2024-11-12 13:09