The world’s largest cryptocurrency, Bitcoin (CRYPTO:BTC), just keeps getting bigger. Over the past 24 hours, its price has risen about 2% and is approaching $58,000 per Bitcoin. This puts Bitcoin’s market capitalization at about $1.07 trillion, according to CoinDesk.
Today, U.S. President Joe Biden signed the latest economic stimulus package, sparking a big rally on Wall Street. These two factors — the price of Bitcoin and the stimulus — caused cryptocurrency stocks to skyrocket. Cryptocurrency miners like The9 Limited and Riot Blockchain were up 17% and 12%, respectively. And mining-equipment manufacturer Canaan was up a whopping 30% for the session.
Canaan, Riot Blockchain, and The9 are diverse businesses. Nevertheless, these tend to trade in tandem based on the direction of cryptocurrencies. And cryptocurrencies tend to trade in the same direction as Bitcoin. On one hand, this makes sense. Riot Blockchain mines Bitcoin. To generate revenue, it periodically sells what it’s mined. When prices go up, it’s a good time for the company to sell, because it allows for greater revenue.
On the other hand, not all of these moves make