Bitcoin
How Bitcoin Holdings Fueled MicroStrategy’s 380% Stock Surge
- MicroStrategy’s MSTR stock led the market with triple-digit gains in the first half
- Solid H1 rally, increased regulatory clarity, upcoming ETH ETF and expected Fed rate cuts are key catalysts for H2 2024
Cryptocurrency-related actions and Bitcoin [BTC] Mining stocks emerged as the biggest winners in the first half of the year, led by MicroStrategy shares [MSTR]which recorded triple-digit gains.
According to the recent CCData report‘Second-half 2024 outlook’, MSTR recorded an impressive 380%, which the report attributed to its massive BTC holdings.
“MicroStrategy led the way with a 380% increase in share price, driven by its holdings of 214,000 Bitcoins, now worth $13.3 billion, purchased at an average cost of $35,158. These holdings have earned the company approximately $6.54 billion since 2020.”
BTC Miner Stocks and Overall Market Performance
Additionally, other cryptocurrency-related stocks such as Coinbase [COIN] and Robinhood [HOOD] also saw impressive increases, rising 329% and 122% respectively, according to the report.
Cryptocurrency mining stocks have also seen a notable recovery. Following April’s halving event, stocks like Hut 8 Corp [HUT] and Bitfarms Ltd. [BITF] rose 86% and 34%, respectively, surpassing the king currency. In turn, in the same period, it fell 3.2%.
Source: CCData
As far as BTC spot ETFs are concerned, the report noted that the products have ‘enhanced institutional adoption’. These products have attracted,
“$14.41 billion in inflows and bringing total net assets to $53.56 billion. These ETFs now account for about 4.4% of Bitcoin’s total market cap. The IBIT ETF alone attracted nearly $17.64 billion, capturing over 1.5% of Bitcoin’s market cap.”
CEX Market Stock Dynamics
Massive growth has also been seen in the centralized exchange (CEX) sector, with the first half of the year (H1) recording an aggregate spot volume of $10.6 trillion – a 145% increase from H2 2023.
Source: CCData
Regarding market share, the report added:
“Bitget, Crypto.com, and Bybit saw the largest increases of 38.4%, 24.6%, and 22.2%, respectively, while Coinbase experienced small declines of around 6.0%.”
Bitcoin and Cryptocurrency Markets: Outlook for the Second Half of 2024
The report highlighted that H1 performance could be a solid foundation for an even better H2. Notably, it saw the expected Fed interest rate cuts in late 2024 and the upcoming release of the Ethereum [ETH] ETFs as key catalysts for the market.
Furthermore, increased regulatory clarity in the US and EU (through MiCA) are crucial catalysts for H2 as well. In fact, AMBCrypto’s recent July outlook report echoed these bullish outlooks, especially for BTC and memecoins.