Cash News
Bitcoin (BTC-USD) reached a record high on Monday, trading just shy of $87,000 and pushing several names in the stock market tied to the crypto trade and the post-election Trump rally higher to start the week.
Coinbase (COIN), which offers cryptocurrency trading on its platform, was up more than 19% Monday and has now soared about 74% in the past five trading sessions.
Similarly, Robinhood (HOOD), which also facilitates crypto trading, saw its stock rise more than 7% Monday and is now up more than 35% across five days. On Friday, Bloomberg reported that Robinhood legal chief Dan Gallagher is among a list of names being considered to lead the SEC under President-elect Donald Trump’s administration.
The surge in cryptocurrencies and related stocks has been a part of the post-election Trump trade, where areas of the market expected to benefit most from a Trump administration have rallied since the election on Nov. 6.
It’s unclear exactly what Trump’s crypto policy will be, but leading into the election, bitcoin traded very closely with the betting odds for Trump to win, as he is expected to be a friend to the industry. In July, Trump attended a bitcoin conference in Nashville to court voters.
Trump’s promises to the industry include appointing a crypto Presidential Advisory Council, firing SEC Chair Gary Gensler, and creating a “strategic national bitcoin stockpile.”
“We’re completely thrilled that we got a new president who campaigned on crypto and keeping the US a leader in the technology,” Coinbase chief policy officer Faryar Shirzad told Yahoo Finance.
BlackRock’s iShares Bitcoin Trust (IBIT), the largest bitcoin ETF, rose more than 13% Monday.
Companies with bitcoin on their balance sheet have also seen a boost amid the Trump trade.
Shares of MicroStrategy (MSTR), which owns nearly 280,000 bitcoins, were up more than 25% on Monday. From Oct. 31 to Nov. 10, MicroStrategy purchased approximately 27,200 bitcoins at an average price of $74,463, the company said in a release on Monday.
Tesla (TSLA) shares have also skyrocketed since Trump’s election win. While the company also owns some bitcoin, the roughly 42% move over the past five days in the stock — including a 9% push higher on Monday — has been attributed to CEO Elon Musk’s relationship with Trump. Musk donated $132 million to Trump’s campaign and was one of his most vocal surrogates during the final months of the campaign.
A report from CNN on Sunday said Musk has been at Mar-a-Lago, the Florida resort Trump owns where the president-elect has been managing the transition, almost every day since election night.