Bitcoin Price Hits $42,000, Reaching 20-Month High; Crypto Stocks Surge; Miner Reverses Course Post-Merger

Bitcoin’s Resurgence Sparks Crypto Frenzy: Prices Surge Past $42,000, Stocks Skyrocket, and SEC Eyes ETF Approvals

In a whirlwind of activity on Monday, Bitcoin shattered the $42,000 barrier for the first time since April 2022, igniting a rally in cryptocurrency stocks such as Coinbase (COIN), MicroStrategy (MSTR), and Marathon Digital (MARA). However, the euphoria was short-lived for HUT stock, reversing its gains after a staggering 430% premarket surge tied to the merger of Hut 8 Mining and U.S. Bitcoin Corp.

Amid the crypto boom, anticipation mounts for the Securities and Exchange Commission’s (SEC) potential approval of numerous Bitcoin exchange-traded fund (ETF) applications. If greenlit, these ETFs could usher in a new wave of institutional interest, allowing investors to ride Bitcoin’s price momentum without directly owning the cryptocurrency. Recent discussions between SEC officials and major players like Grayscale Investments (GBTC), BlackRock (BLK), and Nasdaq (NDAQ) hint at a pivotal moment for crypto on Wall Street.

Grayscale’s August victory against the SEC, overturning the rejection of its Bitcoin Trust conversion to an ETF, adds a layer of intrigue to the unfolding narrative.

As the SEC’s brief approval window for ETF applications approaches (Jan. 5-10), analysts, including Bloomberg Intelligence’s James Seyffart, speculate on a potential green light between Jan. 8 and Jan. 10. With a perceived 10% or lower chance of rejection, the crypto community eagerly awaits the SEC’s decision.

Beyond regulatory developments, cryptocurrency enthusiasts are already gearing up for the next halving event in April, a crucial mechanism controlling Bitcoin’s finite supply. The last halving in May 2020 slashed mining rewards in half, a phenomenon occurring approximately every 210,000 mined bitcoins or four years.

“Bitcoin Price Action” Unveiled:

Bitcoin surged nearly 6% in the 24 hours leading to Monday, peaking at $42,140—its highest in 20 months. The cryptocurrency giant has soared an impressive 153% this year.

Ethereum followed suit, climbing almost 4% in the past 24 hours, reaching $2,250 on Monday—the highest since May 2022. ETH has experienced an 88% rally in 2023.

Coinbase shares jumped 5% early Monday, building on a 7.3% gain on Friday, propelling COIN stock a staggering 302% higher in 2023.

MicroStrategy, a prominent Bitcoin investor, saw a 6.2% surge on Monday, contributing to MSTR stock’s impressive 297% gain this year.

Marathon Digital and rival Riot Platforms (RIOT) also joined the rally, with gains of 7.8% and 10%, respectively.

However, HUT stock faced a 10.2% decline on Monday morning after its remarkable premarket surge tied to the Hut 8 Mining and U.S. Bitcoin Corp. merger. The newly formed entity, Hut 8 Corp. or New Hut, is set to debut on December 4, the stock of HUT started trading on the Nasdaq and Toronto stock exchanges under the ticker symbol HUT.

Shareholders in Hut 8 Mining and U.S. Bitcoin Corp. witnessed significant shifts, receiving 0.2 shares of New Hut stock and 0.6716 shares, respectively, reflecting the dynamic nature of the evolving crypto landscape.