MicroStrategy (MSTR) And Coinbase (COIN) Shares Turns Bullish After US CPI Data
Shares of Nasdaq-listed crypto companies including Coinbase (COIN), MicroStrategy (MSTR), Marathon Digital (MARA), and others have turned bullish as the U.S. consumer price index (CPI) data for January came in at 6.4%.
Coinbase (COIN) price fell over 25% in the last week amid the U.S. regulators such as the SEC and NYDFS’ crackdown against the crypto market. COIN price ended 1.21% down at 56.40 on Monday. However, the shares are trading up 3% at 58.11 during pre-market hours.
Cathie Wood’s Ark Invest keeps on buying Coinbase and Tesla shares from low. Significant buying from Cathie Wood led Coinbase and Tesla shares prices to rally in January.
MicroStrategy (MSTR) price also fell over 12% in the last week. However, the MSTR shares jump over 2% to end at 249.25 at market close on Monday. The shares price is again trading higher in pre-market hours, up nearly 2% at 254. MicroStrategy reported its eighth consecutive quarterly loss this February, with impairment losses on Bitcoin were $197.6 million during the fourth quarter of 2022.
Meanwhile, Nasdaq-listed crypto mining stocks such as Marathon Digital (MARA), Riot Platforms, HIVE Blockchain, Bitfarms, and Hut 8 Mining are also trading higher after the CPI release.
Will Crypto Market Recover Further Like MicroStrategy Shares?
The annual inflation rate in the US slowed to 6.4% in January against the expected 6.2%. It is the lowest since October 2021. Also, CPI rose 0.5% compared to December, the most in three months, mostly due to the higher cost of shelter, food, gasoline, and natural gas.
However, Bitcoin price has held above $21.5K and trades at $21,752, up nearly 2% from a low of $21.4K. Whereas, Ethereum price is up over 2% at $1,515 in the last 24 hours.
After the US CPI release, the crypto market is overall in green, but traders still consider the ramifications of the U.S. SEC’s action against the crypto market.
The U.S. Dollar Index (DXY) shows volatility after the inflation data and currently moving below 103. An upside move in DXY will cause markets to crash.
Also Read: Bitcoin Price Likely To Hit $25K After US CPI Data, Here’s Why