After a troubling start to August, it appears that investors' risk tolerance is widening as Coinbase Global ( NASDAQ: COIN ), MicroStrategy ( NASDAQ: MSTR ) and other crypto-related stocks are grinding higher in Wednesday afternoon trading as bitcoin ( BTC-USD ) bounces.
Bitcoin ( BTC-USD ), the world's largest digital token by market cap, is perking up 2.3% to $23.51K as of around 3:00 p.m. ET. And ethereum ( ETH-USD ) is rising 1.9% to $1.66K over the past 24 hours.
As some view bitcoin ( BTC-USD ) as a leading indicator of risk sentiment, it's not surprising that all three major U.S. stock indices are deep in the green, led by the tech-heavy Nasdaq ( COMP.IND ) +2.7% .
For a purely technical perspective, bitcoin ( BTC-USD ) is changing hands above its 200-day weekly moving average -- standing at around $22.9K at the time of writing -- suggesting that renewed interest in the crypto market is taking hold.
In addition, bitcoin-focused funds last week experienced inflows of $85M, while short-bitcoin funds saw outflows of just $2.6M, GlobalBlock analyst Marcus Sotiriou wrote in a note, citing data from CoinShares. "This is the first week of outflows for the short-Bitcoin product after a 5-week run of inflows," he added.
SkyBridge Capital Founder Anthony Scaramucci, meanwhile, sees bitcoin's ( BTC-USD ) fair market value at nearly $40K, implying a jump of roughly 70% from current levels, according to a report by MarketWatch on August 2. Recall during the depths of a stock and crypto "bloodbath" in mid-June when Scaramucci urged investors to remain disciplined and buy.
When compared with other crypto-related stocks, most of which are catching a bid intraday, Coinbase ( COIN ) +19.4% and MicroStrategy ( MSTR ) +12.7% are certainly taking the lead. Crypto miner stocks such as Hut 8 Mining ( HUT ) +10.8% , Bitfarms ( BITF ) +7.7% and Core Scientific ( CORZ ) +5.5% are seeing solid gains as well.
The bullish price action in MicroStrategy ( MSTR ) shares comes a day after the founder Michael Saylor stepped down as CEO after his company posted a loss of nearly $1B.
Earlier, two senators unveiled a bill that would put bitcoin and ether within the scope of the CFTC .
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Coinbase, MicroStrategy jump most among crypto stocks as bitcoin reclaims $23K