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Bitcoin (BTC-USD) jumped 5.1% in Wednesday morning trading to regain the $28K level as investors appeared to be shaking off worries about increased regulatory scrutiny of the industry. Cryptocurrency-exposed stocks also caught a bid during the premarket session.
The world’s largest token by market cap (BTC-USD) changed hands at $28.37K as of 8:48 a.m. ET, after reaching as high as $28.62K a few hours before.
The upswing marked a rebound after BTC retreated below $28K on Monday on news of the U.S. Commodity Futures Trading Commission’s lawsuit against crypto exchange Binance.
Ethereum (ETH-USD) climbed 4.1% to $1.80K, and XRP (XRP-USD), one of the best performing major coins in recent days, extended its rally, surging 12% to $0.56. Overall, the global crypto market cap gained 4.1% to $1.18T, coinciding with a risk-on day in stock index futures as market participants continued to turn their attention away from the regional banking drama.
Crypto-related stocks, viewed by some as a high-beta (or more volatile) version of the underlying token, gapped up before the market open. MicroStrategy (MSTR), which holds nearly 140K bitcoins (BTC-USD), advanced 4.1%, Coinbase Global (COIN), a recent victim of the regulatory crackdown, gained 2.9%, and bitcoin miner Marathon Digital (MARA) accelerated 6.1%.
SA contributor Jason Appel views bitcoin (BTC-USD) as a Buy “given the phenomenal implied risk-to-reward skew offered in the current stance.”
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