MicroStrategy (MSTR), and Coinbase (COIN), Shares Go Bullish after US CPI Data
As the U.S. consumer prices index (CPI), data for January showed that it was 6.4%, shares of crypto companies listed on Nasdaq such as MicroStrategy and Marathon Digital (MARA) have become bullish.
The crackdown by U.S regulators like the NYDFS and SEC on the crypto market caused Coinbase (COIN’s) price to fall more than 25% over the past week. On Monday, the COIN price was 1.21% lower at 56.40. However, shares are trading higher at 58.11 in pre-market hours.
Ark Invest continues to buy Tesla shares and Coinbase shares from low prices thanks to Cathie Wood. Cathie Wood’s significant buying led to a rally in Tesla shares prices in January.
MicroStrategy’s (MSTR) stock price also dropped by over 12% during the week. MSTR shares rose more than 2% to close at 249.25 on Monday at market close. Pre-market hours saw the shares price rise by almost 2% to 254. MicroStrategy posted its eighth consecutive quarterly loss in February. The impairment losses on Bitcoin were $197.6 millions during the fourth quarter 2022.
After the CPI release, crypto mining stocks listed on Nasdaq such as Marathon Digital (MARA), Riot Platforms and HIVE Blockchain, Bitfarms and Hut 8 Mining have also seen a rise in trading.
The US annual inflation rate slowed to 6.4% in January, compared to the 6.2% expected. It is the lowest level since October 2021. CPI also rose 0.5% in December compared to December. This is mainly due to higher prices for shelter, food, gasoline and natural gas.
Bitcoin’s price has remained above $21.5K, and now trades at $21,752, almost 2% higher than its low of $21.4K. Ethereum is up more than 2% at $1.515 in the past 24 hours.
Although the crypto market is now in green after the US CPI release has been released, traders still need to consider the implications of the U.S. SEC action against the crypto markets.
The U.S. Dollar Index, DXY, shows volatility after inflation data and is currently below 103. Markets will crash if DXY moves upwards.
Also read: Bitcoin Price Could Hit $25K after US CPI Data. Here’s Why
About the author
The content presented may contain the author’s personal opinion and may not reflect current market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.