The beginning of the week brought positive momentum for crypto-related companies as Bitcoin surpassed the $72,000 milestone for the first time since mid-March. Nasdaq-listed Coinbase and MicroStrategy experienced notable gains, with Coinbase shares rising by 8% and MicroStrategy stock surging by 12% during early morning trading in New York.
At 10:00 a.m. ET, Coinbase shares soared above $260, while MicroStrategy stock surged above the $1,600 mark, according to TradingView data.
Last week, New York-based financial firm Oppenheimer raised Coinbase’s share price target to $276, up from the previous target of $200, while maintaining its buy rating. Oppenheimer analyst Owen Lau commented, “We estimate that COIN’s 1Q24 trading volume would be up 95% quarter-on-quarter, and 107% year-on-year to $300 billion.”
Benchmark analyst Mark Palmer increased the price target for MicroStrategy stock to $1,875 from $990 and reiterated his buy rating. This new target suggests around a 17% upside from the current opening price. MicroStrategy’s bitcoin holdings now total 214,250 as of the company’s March filing.
Despite the positive market sentiment, Bitfinex Alpha’s report highlighted a decrease in the supply of Bitcoin held by long-term holders. The supply within the long-term holder cohort has decreased by approximately 900,000 bitcoin since reaching a peak in December 2023. However, the supply held by short-term holders has increased by 1.121 million bitcoin, offsetting the distribution pressure from long-term holders.
For reference, since the introduction of spot bitcoin ETFs on January 11, the amount of bitcoin held by such ETFs has increased from 621,390 to 836,120, according to The Block’s data page.