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Cryptocurrencies like Bitcoin have entered a new bull market with Donald Trump returning to the White House and investors diversifying into new assets.
Digital assets have a combined value of about $3.5 trillion, according to data from TradingView. It’s up more than 50 percent from the beginning of November and is back above the previous peak from November 2021. Last night, it crossed $100,000 for the first time.
Trump indicated he would support cryptocurrencies before getting elected. He took an apparent step in that direction yesterday by nominating Paul Atkins as Chairman of the U.S. Securities and Exchange Commission. That could represent a more favorable environment compared with current Chair Gary Gensler, who tried to impose stricter regulations on cryptos.
New money has also been entering the market via exchange-listed products tracking Bitcoin. Inflows doubled to $676 million on Tuesday compared with the previous session, according to reports from SoSoValue and Decrypt. These portfolios now own about 5 percent of all Bitcoin.
Another potential catalyst is increasing scarcity. The last “halving” in April cut the supply of coins from 6.25 per block mined to 3.125 per block. The commonly cited “stock to flow” statistical model anticipates Bitcoin climbing above $300,000 based on the reduced supply. Could investors see potential for even higher levels if inflows boost demand or regulations get more favorable?
Bitcoin, daily chart, with select events.
Several companies are already involved in cryptocurrencies and have benefited from the recent rally.
Coinbase Global (COIN) is the biggest with a market cap of $77 billion according to TradeStation data. It’s the largest crypto exchange in the U.S. and the custodian for some exchange-listed products. COIN has rallied more than 80 percent this year but remains below the levels where it went public in 2021.
Microstrategy (MSTR) is a software company that started amassing Bitcoin during the pandemic. Investors have used it as a vehicle for crypto exposure, making it one of the most actively traded names in the stock and options markets. MSTR has gained more than 500 percent in 2024.
MARA (MARA) is a Bitcoin miner. It’s much smaller than COIN and MSTR with a market cap of $8 billion. However it still ranks among the most actively traded underliers in the options market, according to TradeStation data. MARA is up about 380 percent on a year-to-date basis.
Another crypto stock is expected to join the market as early as next week.
Coincheck, a Tokyo-based exchange for digital assets, is in the process of going public by merging with special purpose acquisition company Thunder Bridge Capital Partners IV, Inc. (THCP) . A special meeting of THCP’s shareholders is expected to vote on the transaction today.
If approved, the new company could begin trading as soon as Tuesday, December 10. It would be listed on the Nasdaq with symbol CNCK.
Thunder Bridge Capital Partners IV, Inc. (THCP), daily chart, with select indicators.
Important Information
This content is for educational and informational purposes only. Any symbols, financial instruments, or trading strategies discussed are for demonstration purposes only and are not research or recommendations. TradeStation companies do not provide legal, tax, or investment advice.
TradeStation Securities, Inc. is affiliated with Coincheck Group B.V., which is involved in the transaction discussed in this article. Both companies are owned by Monex Group, Inc.
Special purpose acquisition companies (SPAC), like other publicly traded entities, are subject to the overall volatility of the stock market. This can be especially pronounced during periods of economic uncertainty, geopolitical instability, or investor sentiment shifts. Market fluctuations can affect the SPAC’s share price, the value of the target company, and the attractiveness of the SPAC as an investment.
Cryptocurrency-based Exchange Traded Products (“ETPs”), such as spot Bitcoin ETPs, are complex products that carry a high level of risk and are only suitable for investors with a high-risk tolerance. Cryptocurrency-based ETPs may be extremely volatile, illiquid, and can be significantly affected by underlying cryptocurrency prices, world events, government regulations, and economic conditions, regardless of the length of time shares are held. Cryptocurrency-based ETPs are not investment companies registered under the Investment Company Act of 1940 (the “1940 Act”) and are not subject to regulation under the Commodity Exchange Act of 1936 (the “CEA”). As a result, the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA do not apply. Review the Complex Products Disclosures at https://www.tradestation.com/important-information/complex-products-disclosures/.
Disclosure Regarding the Proposed Business Combination of Thunder Bridge Capital Partners IV, Inc. and Coincheck Group B.V.: Thunder Bridge Capital Partners IV, Inc. (“Thunder Bridge”) has announced the effectiveness of its registration statement related to the proposed business combination with Coincheck Group B.V. (“Coincheck”), a leading cryptocurrency exchange in Japan. This transaction will be executed through a reverse merger, allowing Coincheck to become a wholly-owned subsidiary of Thunder Bridge and facilitating access to public capital markets. Shareholders have the right to redeem their shares prior to the completion of the transaction and will vote on the merger at a special meeting scheduled for December 5, 2024. The management team of Thunder Bridge may have interests that conflict with those of public shareholders, including compensation arrangements and equity stakes post-merger, which are disclosed in accordance with SEC regulations. Coincheck’s audited financial statements and potential dilution effects for existing Thunder Bridge shareholders are included in the registration materials. The Board of Directors has unanimously approved the transaction, believing it is in the best interests of shareholders. Forward-looking statements regarding Coincheck’s growth potential are based on management’s expectations and are subject to inherent risks. For further inquiries or detailed information, please click here and here.
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