As the Price of Bitcoin reaches more than $50,000, these Crypto-currencies also Soar
In the recent cryptocurrency bull market, the price of Bitcoin has risen by nearly 500% compared to last year. After the big sell-off last week, the price of each Bitcoin has now risen again to more than $50,000.
In February of this year, the value of 18.6 million bitcoin tokens in circulation exceeded US$1 trillion for the first time, which also helped the market value of the broader cryptocurrency market climb to an all-time high of nearly US$2 trillion.
Large number of investors have been attracted to Crypto-currency Market as these Prices Hike
With the soaring bitcoin and cryptocurrency prices, a large number of investors have been attracted to this booming market, and the stock prices of many cryptocurrency-related companies have also risen, and some companies have even far exceeded the recent increase.
In the past three months, the price of Bitcoin has risen by 150%, while some other major cryptocurrencies have increased even more. At the same time, KR1’s stock price has soared 800% since the beginning of December. KR1 is a London-listed digital asset investment company and an early investor in Ethereum’s rival polkadot.
KR1 managing director George McDonaugh said: “KR1 was established to allow investors to enter the crypto economy through a public company.” Since KR1 was listed in the UK, the company’s share price has risen by 33,000%.
“The performance of cryptocurrency-related stocks outperforms the underlying assets, and the underlying assets allow investment in public stocks, such as 401(K),” said George McDonough. “If you can tax-package something as explosive as cryptocurrency, it makes a lot of sense in the eyes of many investors.”
Investors are pricing in future management decisions
George McDonough said: “Investors are pricing in future management decisions, which makes KR1 slightly different from Bitcoin mining stocks and Coinbase (a Bitcoin and cryptocurrency exchange headquartered in San Francisco), which will pass directly Go public and become a public company with a market value of approximately $100 billion (which means it will not seek to raise additional funds).”
In recent months, the shares of some bitcoin and cryptocurrency miners have also risen sharply. The Las Vegas-based Marathon Digital Holdings (Marathon Digital Holdings) was formerly known as the Marathon Patent Group. Its stock has risen 500% since the beginning of December last year. The stock also rose nearly 400%.
For domestic purposes, the Ninth City (The9), headquartered in Shanghai, is a company that develops and operates online and mobile games, blockchain services, and Bitcoin mining.
The company’s stock price has soared by more than 150% in the past three months, almost with the price of Bitcoin soaring.
Lately, share price of cryptocurrency companies has continued to rise
Although the share price of cryptocurrency companies has continued to rise in Bitcoin’s latest bull market, company executives are well aware that if there is a cryptocurrency bear market similar to 2018, the stock price is likely to plummet.
George McDonough said: “If digital assets fall by 90% again, there may be all possible desperation, as they did in 2018, although he quickly pointed out a glimmer of hope.”
“This will mean that we can start allocating capital again. Now, we are relying on the success of the projects we bet on during the 2018-2019 bear market. We need to make sure that we are in the most advantageous position to take advantage of the tailwind if we enter a deceleration At this stage, we can work harder.”