- Crypto stocks are outperforming the broader market despite economic uncertainty.
- Strategy, Coinbase, and Riot Platforms saw notable gains.
- Analysts remain cautious about crypto’s short-term outlook.
While fears of a potential recession and the impact of Trump’s trade policies weigh on U.S. markets, crypto stocks are showing unexpected resilience.
Despite broader tech and software sell-offs, companies like Strategy (MSTR), Coinbase (COIN), and Riot Platforms (RIOT) posted gains this week, signaling investor confidence in the sector.
However, analysts warn that the recent rebound doesn’t necessarily indicate sustained recovery.
Crypto Stocks Rise Against the Market
Strategy (MSTR) rose 8.9% on Tuesday to $260.59 and remained stable in pre-market trading Wednesday. Although the stock is still down 10% year-to-date, it’s standing firm against the global tech slump.
Coinbase (COIN) jumped 7% to $191.69, continuing its upward momentum. While COIN remains 23% lower since January, the stock is showing signs of a turnaround.
Meanwhile, Riot Platforms (RIOT) gained 2.1%, reaching $7.72. Despite a 24% year-to-date decline, investors see the dip as a buying opportunity, betting on long-term growth as the crypto sector stabilizes.
The recent pullback in crypto stocks has encouraged dip-buying among investors who remain bullish on the industry’s long-term potential.
With prices lower than in previous months, many view this as a chance to accumulate shares at a discount, anticipating future gains as market conditions improve.
Digital Assets Slightly Rebound
Cryptocurrencies mirrored the rally, with Bitcoin gaining over 3% to reclaim the $82,000 level after dipping to $76,700. However, BTC remains down more than 25% from its all-time high of $109,000.
Market volatility has been fueled by macroeconomic uncertainty, including the Federal Reserve’s monetary policy and persistent inflation.
“Bitcoin rebounded on Tuesday after hitting four-month lows, driven by dip buying. However, global economic uncertainty continues to weigh on the market,” said Antonio Di Giacomo, Financial Markets Analyst for LATAM at XS.
“Although other cryptocurrencies also showed signs of recovery, enthusiasm remains moderate, even after the president announced a national cryptocurrency reserve and a regulatory summit,” Giacomo added.
Bitcoin and Ethereum ETFs See Heavy Outflows
Despite the recovery in crypto stocks and Bitcoin’s modest rebound, ETF investors remain cautious.
Bitcoin saw net outflows of $153.9 million in early March, with Grayscale’s Bitcoin Trust (GBTC) leading the sell-off by offloading 641 BTC worth $56.45 million.
Ethereum ETFs also struggled, with nine funds reporting a combined outflow of 1,046 ETH, valued at $2.28 million. BlackRock’s iShares Ethereum ETF led the exodus, shedding 12,111 ETH, worth $26.4 million.
More Pressure Ahead?
Christopher Tahir, Senior Market Strategist at Exness, warned that crypto markets could face further headwinds in the short term.
“Despite recent initiatives such as President Trump’s executive order to establish a strategic Bitcoin reserve and digital asset stockpile, the market responded negatively,” Tahir told CCN.
Analysts note that while the reserve is a long-term bullish signal, its initial funding from seized assets has done little to boost confidence. The lack of an aggressive plan to acquire Bitcoin directly from markets has left investors unimpressed.
“With Bitcoin struggling to regain momentum, the crypto market could continue to face downward pressure in the near term,” Tahir added.
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