- Silvergate stock jumped more than 12% on Monday after bitcoin hit a five-month high over the weekend.
- Coinbase stock has also seen a tear recently, rising 53% in the past month.
- Bitcoin is up almost 36% over the past month amid a rally in the broader crypto markets.
Silvergate and other crypto-related stocks are climbing after bitcoin hit a five-month high over the weekend.
The crypto-focused bank rose more than 12% to $15.45 on Monday, after plunging earlier this month on news that customers withdrew $8 billion in deposits by the end of the month. last year amid the collapse of Sam Bankman-Fried’s FTX crypto exchange.
Meanwhile, bitcoin surged above $23,000 on Sunday, according to Messari, its highest price since August. The token fell slightly to $22,884 on Monday, but is still ahead 8.5% in the past week. Bitcoin has jumped nearly 36% in the past month, erasing losses from the fallout from the FTX crash.
Crypto markets don’t seem to be in tune with crypto lender Genesis’ filing for bankruptcy last week, as well as the broader financial troubles of its parent company Digital Currency Group. Investors may be more comfortable with speculative bets as inflation data earlier this month raised hopes that central bank rate hikes could slow further.
“Cryptocurrency prices continued to register improvements as trader sentiment turned less pessimistic. Expectations of lower inflation, looser monetary policies and a possibly milder economic slowdown helped support prices above last November’s peak,” Wael Makarem, senior market strategist at trading platform Exness, said in a statement.
Makarem added: “Furthermore, traders expect the Federal Reserve to further reduce the pace of interest rate hikes at their next meeting. cryptocurrency prices.
The jump in Silvergate shares comes after the U.S. crypto-focused bank reported a net loss of $1 billion in the fourth quarter of 2022. The financial firm has been rocked by a long crypto bear market, as well as a contagion from the collapse of industry giants like FTX.
In a pinch of good news, Silvergate revealed that the company had minimal exposure to now bankrupt digital asset lender Genesis over the weekend.
Meanwhile, other crypto-related stocks like Michael Saylor’s MicroStrategy and crypto-miner platform Riot are trading slightly higher, ahead 1% and 1.4%, respectively.
Elsewhere, Coinbase fell 1% on Monday but was in tears after the company went on a cost-cutting spree and laid off 20% of its staff earlier this month. The cryptocurrency stock is up more than 53% in the past month.
Amid the broad crypto rally, even Bankman-Fried favored so-called “Sam Coins” like solana and FTT have trended higher lately.
“Crypto-related stocks follow the crypto markets and [bitcoin] very closely because the user base and customer network of these companies deal heavily with digital assets,” Ajay Dhingra, head of research and analytics at Web3 operating system Unizen, told Insider.
Dhingra added, “The Genesis bankruptcy marks the end of the great deleveraging of the crypto markets, and retail is now interested in buying these stocks and [bitcoin] at a very favorable price.”