Shares of a few Canada-listed cryptocurrency stocks, including as Galaxy Digital (TSX-V:GLXY) Holdings Ltd, Hut 8 Mining Corp (TSX:HUT), and Bitfarms (TSX-V:BITF) Ltd, moved sharply higher Wednesday as the Bitcoin price jumped nearly 10% and the price of Ethereum gained more than 5%.
Galaxy Digital (TSX-V:GLXY) shares surged as much as 12%, while shares of Hut 8 Mining rose more than 9%, and Bitfarms (TSX-V:BITF) stock popped as much as 13% on above-average volume.
In a note published on Tuesday, Stifel GMP analysts wrote that Bitcoin's correlation to gold has strengthened to a 0.9 coefficient since the banking crisis unfolded as investors seek safe-haven exposure.
They added that First Republic Bank (NYSE:FRC)’s announcement that it will surrender to a ~US$100 billion asset sale as part of an emergency rescue plan also helped fuel Bitcoin's recent price run-up.
“HIVE Blockchain and Bitfarms remain top picks in our coverage, and we continue to believe both companies are well-positioned across a geographically diverse footprint with access to attractively low-cost power and industry-leading yield-per-exahash,” the analysts said.
And Geoff Kendrick, head of crypto research at British banking giant Standard Chartered, believes Bitcoin still has plenty of room to run.
“We see potential for Bitcoin to reach the $100,000 level by end-2024, as we believe the much-touted ‘crypto winter’ is finally over,” he noted.
Contact Sean at sean@proactiveinvestors.com