TLDR
- Crypto stocks including Coinbase, Strategy, and Robinhood rose 2.8%, 1.9%, and 4% respectively in pre-market trading on Monday
- President Trump softened his stance on China tariffs over the weekend, boosting investor confidence after Friday’s market crash
- Bitcoin recovered to $115,261 and Ethereum climbed to $4,174 following the “Black Friday” selloff
- Trading platforms benefit from rising crypto prices through increased transaction fee revenue
- Strategy holds the world’s largest Bitcoin treasury, with its stock value directly tied to Bitcoin’s price movements
Crypto-related stocks rebounded in Monday pre-market trading after President Trump eased concerns about U.S.-China trade tensions. The recovery came after a brutal Friday selloff that wiped billions from the cryptocurrency market.
Coinbase Global shares rose 2.8% before the market opened. Strategy, formerly known as MicroStrategy, added 1.9% while Robinhood Markets climbed 4%.
The gains followed Trump’s softer tone on potential tariffs against China. On Sunday, the president posted “It will all be fine” on Truth Social. This came days after he threatened 100% tariffs on China, which had sparked fears of a global trade war.
Bitcoin recovered to $115,261, up 3.55% over 24 hours. Ethereum showed stronger gains, rising 9.32% to $4,174. Both cryptocurrencies had crashed on Friday in what traders called “Black Friday.”
The selloff led to billions in liquidations across crypto markets. Investors fled risk assets as trade war concerns mounted. U.S. stock futures for the S&P 500 rose 1.4% on Monday morning.
Trading Platform Revenue Tied to Crypto Prices
Crypto trading platforms like Coinbase and Robinhood earn transaction fees when users buy and sell digital assets. Higher trading volumes during price rallies boost their revenue. When crypto prices fall, trading activity often slows down.
Strategy operates differently from typical crypto stocks. The company holds Bitcoin as its primary treasury asset. Its stock price moves in tandem with Bitcoin’s value.
Bitcoin mining stocks also participated in the rally. MARA Holdings, the world’s largest Bitcoin mining firm, gained over 3%. Bitmine Immersion Technologies, which focuses on Ethereum, jumped more than 6%.
Market Watchers Eye Strategy’s Bitcoin Purchases
Investors planned to monitor Strategy’s weekly Bitcoin purchase update. The company typically files these reports on Mondays. Traders want to know if Strategy bought Bitcoin before Friday’s crash.
Strategy holds the world’s largest corporate Bitcoin treasury. Any purchases before the price drop would represent a buying opportunity. Purchases after the crash would show confidence in Bitcoin’s recovery.
The broader market showed signs of stabilization on Monday. Easing trade tensions between the U.S. and China helped restore investor confidence. Oil prices also rebounded, supporting the market recovery.
Crypto exchanges Coinbase and Bullish both rose more than 2.6% in pre-market trading. The exchanges handle billions in daily trading volume across multiple cryptocurrencies.
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