Crypto Stocks Gain As Wall Street Pushes Bitcoin Above $30k, Pepe Shoots Up

Every time crypto goes lower, stocks linked to digital currencies also go lower. With Wall Street interest suddenly pushing Bitcoin back above $30k this week, crypto-linked stocks such as Coinbase, Marathon Digital and MicroStrategy are also benefiting.

In the broader market, the revival of memecoin Pepe, the biggest hype of the month of May, was particularly striking.

Adoption

Most of the well-known crypto stocks have been trading higher these last few days as Bitcoin prices soared on the news that so many companies on Wall Street are getting into crypto. Normally, a new competitor is not really good news for a stock, but crypto platform Coinbase, which was in the news last week due to the lawsuit against the SEC, eagerly benefited from the price increase of Bitcoin.

The fact that Coinbase, even with the introduction of a new competitor such as EDX (the crypto platform launched by several banks), is still regarded as the leading player in the US market is probably not surprising.

Other crypto-related stocks such as MicroStrategy, the investment vehicle of famous Bitcoin fan Michael Saylor, and Marathon Digital, the important maker of Bitcoin mining equipment, also showed a nice comeback.

Lastly, crypto stocks also benefited from the positive feedback that analysts provided as they argued that the fact that so many Americans already own crypto (20% of all Americans according to the latest estimate) is probably enough to prevent an outright ban by the White House.

Currency strategist Claudio Wewel explained:

We view an eventual outright cryptocurrency ban as highly unlikely as adoption is already too widespread, but regulatory requirements will only increase in the coming months and years.

Pepe comeback

In May, memecoins were the hype of the crypto world. The fast rise (and fall) of coins like Pepecoin (PEPE) and Wallstreetbets made millionaires out of some young traders and left others with heavy losses. Wallstreetbetscoin lost 90% in 1 day in May. Meanwhile Pepe seems to have started a new ride up since this week.

Request 03 - $PEPE

Strong bounce, but no clear continuation yet.

I’m looking for another sweep for liquidity into blue box for an entry or when we reclaim 106, that’s a great entry point as well. pic.twitter.com/g9qOtcL4Y7

— Michaël van de Poppe (@CryptoMichNL) June 20, 2023

Yesterday, Pepe rose up 40% at one point.