Shares of crypto industry companies: how the market has changed after the decision of the US authorities

Companies and events

The main event of the past week was the speech of the head of the US Federal Reserve, Jerome Powell. The main result: the key rate remained unchanged in the range of 5.25-5.5%. Cryptocurrency investors reacted rather restrainedly to this turn of events. What happened to crypto stocks after Powell’s statements? To answer this question, consider the securities of ten
largest by market capitalization organizations that hold, mine or accept Bitcoin.

Galaxy Digital Holdings

In tenth place we placed a mining company from Texas, Galaxy Digital Holdings. The market capitalization is $2.28 billion. Shares of this company, traded on the Toronto Stock Exchange (TSX), fell just over 3% over the week. The fall occurred exactly after Powell’s speech. At the same time, initially they even grew to $9.77. However, the end of the week was marked by a departure from $9. Current price is $8.99.

Source: tradingview.com

Hut 8 Mining

Ninth place is also taken by a mining company, but now from Canada – Hut 8 Mining. Its capitalization is $400 million more than that of Galaxy Digital – $4.32 billion. Shares are traded on the NASDAQ stock exchange. Over the past week, the securities increased in price by more than 9.5%. Interestingly, before the Fed chairman’s speech, Hut 8 Mining shares were in the red during the week, but after that they rose by more than 15%.

Source: tradingview.com

Riot Blockchain

In eighth place is a mining company from Colorado – Riot BlockChain. Its capitalization is $3.22 billion. Shares are traded on the NASDAQ stock exchange. Over the week they added almost 5%. Moreover, over the last three days (from December 13 to 15), just after Powell’s speech, almost plus 12%. In other words, investors expected the worst from the Fed chairman.

Source: tradingview.com

Marathon Digital Holdings

Another miner is in seventh place. This is Marathon Digital Holdings from Nevada. The first representative of the top, whose capitalization exceeds $4 billion – $4.07 billion. The company’s shares are listed on the NASDAQ stock exchange. Over the past week they have grown by more than 16%. All the growth occurred just after Jerome Powell’s speech.

Source: tradingview.com

Grayscale Bitcoin Trust

But in sixth place of the top is the first non-miner – Grayscale Bitcoin Trust, a trust of the Grayscale company (abbreviated as GBTC) investing in bitcoins. Its capitalization reaches almost $6 billion. You can invest in the trust only through the over-the-counter market. During the week, the fund’s quotes increased by 1.71%. However, over the past two days, which were after the announcement that the key rate would remain unchanged, GBTC lost more than 3%.

Source: tradingview.com

MicroStrategy

Fifth place is taken by software developer MicroStrategy. Although the company is not directly involved in the crypto industry, it is one of the largest investors and holders of Bitcoin. At the end of 2023, MicroStrategy holds more than 170,000 BTC in its wallets. Its capitalization is $8.91 billion. Like most other companies on the list, MicroStrategy is traded on the NASDAQ stock exchange. Shares were down 0.64% for the week. At the same time, after Powell’s speech, quotes fell by more than 2.5%.

Source: tradingview.com

Coinbase

Fourth place goes to America’s largest crypto exchange, Coinbase. Its market capitalization is $35.38 billion. The company’s shares are listed on the NASDAQ stock exchange. Over the week, the securities rose in price by more than 4.5%. Interestingly, on the day of Powell’s speech (December 13) and the next day (December 14), Coinbase shares gained more than 10%, but fell 3.73% on Friday.

Source: tradingview.com

Block

The top three are opened by Block, which until 2021 was known as Square. The company’s capitalization is $45.57 billion. Block is engaged in financial technologies, among which payments are given priority. However, cryptocurrencies are clearly not alien. Early December 2023 Block
launched Bitkey self-custody wallet, which is available in more than 95 countries around the world. The company’s shares are listed on the New York Stock Exchange (NYSE). Over the week, they added about 7.5% in price, more than 6% occurred in the period after Jerome Powell’s speech.

Source: tradingview.com

PayPal

The second place is occupied by the PayPal payment system. The service allows you to buy, sell and transfer cryptocurrencies. Additionally, PayPal launched its stablecoin, PayPalUSD (PYUSD), in August 2023. So the company is directly related to cryptocurrencies.

As of December 2023, PayPal’s capitalization is just over $66 billion. The company’s shares are traded on the NASDAQ stock exchange. Over the past week they grew by a little more than 3.5%. At the same time, growth was ensured by one trading session on December 13, when the head of the Fed spoke.

Source: tradingview.com

Tesla

In first place is the electric car manufacturer Tesla with a capitalization of $805.85 billion. Although the company’s activities are not directly related to cryptocurrencies, the brainchild of Elon Musk is a major investor in Bitcoin. At the end of the third quarter of 2023, Tesla had 9,720 BTC in wallets worth about $275.6 million.

The company’s shares are traded on the NASDAQ exchange. Over the past week they added a little more than 4%. Moreover, after Powell’s speech they added more than 10%.

Source: tradingview.com

Conclusion

Thus, most shares of crypto companies rose after the speech of the head of the American central bank. At the same time, for most of them there was a drop before the decision on the rate was announced. In this regard, we can conclude: investors were waiting for the worst development of events.

This material and the information contained herein do not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.