Coinbase Joins S&P 500 Amid Crypto Stock Surge
The price of Bitcoin (BTC) surpassing $100,000 is exciting the cryptocurrency community and causing changes within traditional markets. Cryptocurrencies are becoming more popular, which leads digital asset stocks upward in value.
The changing global economy is encouraging traditional markets to shift toward digital transactions. We can see this in the recent growth of crypto firms, such as Coinbase (COIN), Galaxy Digital (GLXY) and Strategy Incorporated (MSTR), whose success is now recognized outside the crypto world, on the Wall Street.
Technical Indicators Support Coinbase’s Uptrend
One of the largest U.S. crypto exchanges, Coinbase, has now entered the S&P 500 as the first pure-play crypto company to do so. People in the digital asset industry are calling it a symbolic achievement, pointing to increased trust from the wider industry.
On the day after the announcement, COIN dipped 0.93% but surged almost 32% in the following week. Although technical indicators suggest an upward trend, failing to keep above $265 could cause the price to dip down to $239.98.
It’s worth noting that the recent bullish trend began after a minor issue with third-party companies. Despite the issue only affecting a handful of users, Coinbase’s solid nature and the way investors view the company seem to have negated the bad media.
Galaxy Digital, founded by billionaire Mike Novogratz, recently made its mark on the Nasdaq, after facing a four-year delay due to dealings with the U.S. Securities and Exchange Commission. On May 16, the stock began trading at $23.50 per share, which is a major accomplishment for the crypto company.
MSTR Near Key Resistance, Momentum Fading
Although the stock is now listed, the short-term data suggests bears are still dominant. A number of analysts are keeping close tabs as the stock gets closer to $24.30. If GLXY succeeds in breaking out, it could push GLXY higher to about $30. However, dipping under $23.91 could see GLXY slip to $22 or beyond.
Novogratz said it was not easy for the firm to list yet he was confident the favorable wave of regulation in key nations would help grow the company.
Lately, Strategy Incorporated added 7,390 bitcoins to the huge amount it already owns. The $765 million that has been invested proves the company remains upbeat, despite being sued by customers.
Stock (MSTR) is still very close to $428.46 resistance and its Relative Strength Index fell from 67.51 to 61.60, pointing to a possible decrease. A breakout above resistance may push prices to $437.61, though if the bears win, the price might fall to $390 and then $356.
With these shifts in money and commerce, much of Asia and other countries are observing the U.S. adopt a positive attitude towards crypto. Even though India used to doubt digital currencies, it now seems to be warming up to them as it considers becoming a crypto hub in the future.
