Crypto stocks outlook ahead of FOMC meeting

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  • Bitcoin miner Core Scientific soared 33% as shares of Bitfarms, Stronghold Digital, CleanSpark all slid over the past week.
  • Shares of Coinbase and Robinhood also gained as bitcoin broke above $23,000.
  • The FOMC meeting is this week and the market reaction will be key going forward for bitcoin and crypto stocks.

Several crypto-related stocks are looking to extend the gains recorded over the past few days after Friday closed in positive territory.

rippers have share prices crypto mining firm Crypto was struggling badly after hitting new all-time lows in the middle of winter.

This is happening even as bitcoin price starts to move higher after holding above the $23,000 level over the weekend. An important macro news event to watch this week is the FOMC meeting.

Crypto stocks were helped by a jump in the price of bitcoin

Core Scientific (CORZ), The The world’s largest publicly traded bitcoin miner surged an impressive 33% on Friday, while crypto mining firm Digihost Technology (DGHI) saw its shares jump more than 11%.

Stocks of NASDAQ-listed miners Bitfarms (BITF), Stronghold Digital Mining (SDIG), Bit Digital (BTBT) and CleanSpark (CLSK) all ended the week in the green. Elsewhere, NYSE-listed Bit Mining and SOS ADRs also rose.

Shares of Coinbase (COIN) and Robinhood (HOOD) also traded higher, with the US-based crypto exchange’s stock rising more than 15% on Friday. coinbaseThe stock is up more than 73% in the last 30 days before the market open on Monday, Jan. 30. Shares of Robinhood ended the week higher by 8% and are up nearly 28% over the past 30 days.

Bitcoin Price, FOMC – What Next for Crypto Stocks?

As mentioned, most of these publicly listed crypto companies saw their share prices rise in tandem with the positive price action of bitcoin. But with this week being an important one in terms of the Federal Open Markets Committee (FOMC) meeting, crypto is also heavily correlated to stocks.

On the positive side of things…

BTC/USD reached a high of $23,955 last week and is up over 40% year-to-date. According to recent data from crypto analytics platform Glassnode, BTC’s recent surge in momentum has the dominant digital asset’s price above three key on-chain metrics.

The breakout above $22,800 had bitcoin above both long-term and short-term cost-basis as well as realized price – the first time this has happened since the 2020 COVID-19 induced crash. Furthermore, the last time the prevailing BTC price was above the three indicators was during the 2018/19 bear market.

on the flip side…

As Covered Per Coinjournal, Glassnode suggested last week that holding above the $22.4k level would aid bulls sentiment and potential gains. However, the recent momentum could be derailed if investors react negatively to the Federal Reserve’s FOMC minutes this week.

Although the market is already expecting an increase of 25 basis points, some experts believe it will be a disaster For the markets if the Fed instead goes for a 50 basis point hike.

According to CoinGecko, bitcoin was trading down 1.1% as of 7:15 a.m. ET on Monday, as the potential for FOMC-related volatility began to set in across markets.

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