Bitcoin (BTC-USD) rose more than 2% on Monday to reclaim the $110,000 level, giving a boost to cryptocurrency stocks and raising hopes that this month’s shakeup in markets was a hindrance rather than signaling a broader turn in the cycle.
“Bitcoin is currently in a reaccumulation phase following its short-term correction, with market sentiment stabilizing and institutional demand remaining resilient,” Linh Tran, market analyst at online broker XS.com, wrote on Monday.
Along with bitcoin’s rise, Strategy (MSTR) stock gained more than 4% after the company revealed it purchased 168 bitcoins at an average price of $112,051 between Oct. 13 and Oct. 19. The company’s SEC filing on Monday showed it now owns a total of 640,418 bitcoins, with an aggregate purchase price of $47.4 billion.
Trading platforms Robinhood (HOOD) and Coinbase (COIN) rose nearly 5% and 3.5% respectively. Stablecoin Issuing Circle (CRCL) also gained 3.5% as momentum grew in the digital asset space.
Crypto mining companies, which also focus their powerful infrastructure networks on artificial intelligence and high-performance computing (HPC), also soared on Monday.
Bitcoin miner MARA Holdings (MARA), which has expanded into HPC data centers and artificial intelligence, gained 11% on Monday. Its pair, Bit Digital (BTBT), also rose 20%, while Cipher Mining (CIFR) rose 10%.
Read more: What is bitcoin and how does it work?
Adding to the optimism was news that Japan’s top financial regulator was considering policy changes that would allow Japanese banks to hold bitcoin and other cryptocurrencies, a sign of growing institutional acceptance.
Along with bitcoin’s rise, other digital assets gained on Monday, with ether (ETH) regaining the $4,000 level after a drop to $3,700 last week.
BlackRock’s head of digital assets, Robert Mitchnick, noted in an interview with Yahoo Finance that the recent mini-crash in bitcoin and the sharp sell-off in other digital assets were driven by highly leveraged speculative trading, especially on offshore futures exchanges.
Less than 2% of total bitcoin ownership is represented by futures contracts held on these offshore exchanges, although they account for the majority of daily trading volume, Mitchnick noted.
“Over time, the more sophisticated type of long-term buy-and-hold investing activity takes over and predominates, but not with that short-term noise,” Mitchnick told Yahoo Finance.
Inés Ferré is a senior business reporter at Yahoo Finance. Follow her on X in @ines_ferre.
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