- Coinbase and MicroStrategy shares rose 6% and 7%, respectively, as Bitcoin broke $59,000.
- Analysts say the cryptocurrency market could be in turmoil amid potential bearish catalysts.
Coinbase and MicroStrategy stocks were each up more than 6% as of 2 p.m. ET on August 8, a rally that came as the Bitcoin price surged above $59,000.
Coinbase (COIN) shares were trading near $192.30, while MicroStrategy’s MSTR was hovering around $134.23.
Read more: Michael Saylor’s Bitcoin Bet Pays Off, His BTC Holdings Now Valued at $1 Billion
Bitcoin’s surge shows recent momentum building after it regained support above $50,000. According to data from CoinGecko, the leading cryptocurrency is up 7% in the last 24 hours. Last week’s losses have narrowed to around 5%.
Meanwhile, cryptocurrency analyst Ali Martinez said long-term holders have been buying aggressively during the recent sell-off.
While we are liquidating #bitcoin The futures that recently fell to $49,000, long term $Bitcoin Holders were buying. They added over 184,500. #bitcoin They added about $10 billion worth of value to their portfolio! pic.twitter.com/zTL04qy8qQ
— Ali (@ali_charts) August 8, 2024
Short term outlook
This positive move against BTC comes as XRP leads the crypto market after the latest court ruling in the Ripple v. SEC case. XRP traded above $0.63, helping Stellar (XLM) and other altcoins rally. Ethereum also broke through $2,600.
However, XRP is located in a key resistance zone and Ethereum may still have to deal with downward pressure from potential selling.
“There could be a potential upper limit in the short term as Jump Trading continues to liquidate ETH (21,394 $wstETH ~$63.6M remaining) and the Plus Token Ponzi 2 ETH wallet has moved a total of 25,757 ETH ($63.1M) in the last 30 hours,” said analysts at QCP Capital. Wrote.
The broader market is also still largely cautious as analysts point to uncertainty surrounding the global macro environment and geopolitical tensions in the Middle East, which could still see cryptos retreating for another month or so.