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The share prices of stocks affiliated with cryptocurrencies generally did well on Monday. Two cases in point are crypto exchange operator Coinbase Global (COIN -3.08%) and next-generation bank Silvergate Capital (SI 1.42%), which has created a a credit-line product called SEN Leverage whose borrowings are collateralized by Bitcoin (BTC -4.74%).
Coinbase closed the day nearly 6% higher, while Silvergate enjoyed a rise of just under 4%.
As is very often the case with cryptocurrency-adjacent stocks, the gains of both Coinbase and Silvergate are directly tied to recent price increases in coins and tokens.
Image source: Getty Images.
While the “cryptocurrency winter” might not yet be thawing into spring, a great many coins did well on Monday. In late afternoon, Bitcoin, for example, was up by almost 5% across the preceding 24 hours, following its crossing above the psychologically significant $30,000 price line. Meanwhile Ethereum was almost 3% in the black, and Cardano‘s rise matched that of Bitcoin.
There were no major developments in either the broad cryptocurrency space, or with any of the leading coins. That might mean a “no news is good news” scenario for investors looking for beaten-down bargains among these assets.
Bitcoin has been in the doldrums the past few weeks; in fact, it’s still nowhere near its level at the beginning of the year, when it traded for nearly $48,000 apiece. It’s important to note, particularly in regard to Coinbase, that the latest uptick in crypto prices isn’t being driven by increased volume — so it probably won’t end up moving the needle much on the exchange operator’s fundamentals.
Still, it’s encouraging that crypto prices are recovering, even if that recovery isn’t spectacular. Investors in cryptocurrency stocks were right to be cautiously optimistic.
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