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Cryptocurrency-focused stocks like MicroStrategy (NASDAQ:MSTR), Silvergate Capital (NYSE:SI) and HIVE Blockchain (HIVE) are gaining some ground in Tuesday morning trading, as bitcoin (BTC-USD) edges over $30K following a deep selloff triggered by Terra’s (LUNA-USD) (UST-USD) collapse last week.
Bitcoin (BTC-USD +3.1%) is rising to $30.4K as of shortly before 10:30 a.m., though still off more than 35% YTD. Ethereum (ETH-USD +4.4%) is also perking up to $2.09K but down 45% YTD. Since bitcoin’s correlation with the stock market has been increasingly robust over the past year, it’s important to note that all three major U.S. stock indices are in the green, with the tech-heavy Nasdaq (COMP.IND) rising the most.
“Small amounts of dip buying tentatively gave Bitcoin a boost, but too much of the retail and institutional world still have massive wounds from the recent collapse,” OANDA Senior Market Analyst Edward Moya wrote in a note, as quoted by Bloomberg.
Looking at on-chain data, bitcoin’s (BTC-USD) intraday upswing comes as blockchain trends signal “confidence in the cryptocurrency’s recovery,” Vauld CEO and Co-founder Darshan Bathija told Bloomberg. Specifically, the number of addresses holding 1-10 BTC has increased to 694K from 689K between May 9 and May 19.
Also, crypto funds last week saw their highest inflows so far in 2022, amounting to $274M in the week through May 13, CoinDesk reported May 16, citing data from CoinShares. The boost in inflows was a “strong signal that investors saw the recent UST stablecoin depeg and its associated broad sell-off as a buying opportunity,” said CoinShares Head of Research James Butterfill, as reported by CoinDesk.
Crypto miner stocks: Riot Blockchain (RIOT +4.5%), Marathon Digital (MARA +4.9%), HIVE Blockchain (HIVE +5.8%), BIT Mining (BTCM +2.2%), Hut 8 Mining (HUT +4.4%), Bitfarms (BITF +4.8%), Bit Digital (BTBT +5.6%), CleanSpark (CLSK +3.2%), Greenidge Generation (GREE +4.7%), Core Scientific (CORZ +3.0%) and Stronghold Digital (SDIG +8.1%).
See why bitcoin is “not immune” from stock market volatility.