Bitcoin Surge Above $47,000 Propels Cryptocurrency-Linked Stocks in Pre-Market Trading

Cryptocurrency-related publicly traded companies witnessed robust gains in pre-market trading on Friday as Bitcoin extended its rally, surpassing $47,000 for the first time in a while. This surge, marking the highest levels since the introduction of Bitcoin ETFs, propelled its advance for the week.

Technically, Bitcoin has broken out of a range and could be poised for a push towards a fresh yearly high above $50,000. The rally appears to be driven by leverage, with the open interest on BTC contracts surging by $982 million in less than 24 hours. Analysts suggest that the $40,000 level could face testing over the weekend, but the overall market sentiment indicates a potential further appreciation for BTC, possibly breaking the key $45,000 support barrier.

Ether, the second-largest cryptocurrency, also experienced gains, rising by 3% to reach a two-week high. The boost came after asset managers Ark Invest and 21Shares amended their joint spot ETH exchange-traded fund (ETF) filing.

Spot trading volume across centralized crypto exchanges saw a significant uptick in January, marking the fourth consecutive month of growth and surpassing levels last seen in June 2022. The approval of Bitcoin ETFs played a crucial role in renewing interest in digital assets.

Despite regulatory challenges faced by Binance, it remains the largest cryptocurrency exchange by trading volume, with a 31.3% market share. Binance’s trading volume rose by 2.73% in January, reaching $473 billion. However, the company experienced a gradual decline in its spot share over 2023, leading to founder and CEO Changpeng “CZ” Zhao stepping down.

Mining-related stocks also witnessed notable gains, with Riot Platforms (RIOT) and Marathon Digital Holdings (MARA) rallying by 7% and 8%, respectively. Mining stocks are often recommended as an entry point for exposure to Bitcoin, particularly ahead of the forthcoming halving event, where the reward miners earn for new coins is reduced by 50%.

Cryptocurrency exchange Coinbase (COIN) and software company MicroStrategy (MSTR), holding approximately 190,000 BTC on its balance sheet, both recorded gains over 5%. BlackRock’s Bitcoin exchange-traded fund (IBIT), the first of the new spot BTC ETFs to reach $2 billion in assets, added around 2.75%.

Bitcoin miner CleanSpark (CLSK) emerged as a frontrunner, surging by almost 20%. The company reported a fiscal first-quarter profit of $25.9 million, a remarkable turnaround from the $29 million loss reported in the same period the previous year.

Digital Assets Desk