When Bitcoin fell to the low $40,000, bears bashed the cryptocurrency. They thought wrongly that the currency would not rebound. Within a few months, bitcoin closed at almost $61,000 last week.
Investors unwilling to open a Coinbase (NASDAQ:COIN) or Voyager Digital (TSX:VOYG) account cannot trade cryptocurrencies. Instead, they may buy the underlying crypto exchange services.
SoFi Technologies (NASDAQ:SOFI) is also offering cryptocurrency trading, supporting bitcoin, euthereum, and 19 other coins. As Bitcoin heads toward $100,000, those platforms will benefit from higher volatility. Users will trade the coin on higher volume, creating more revenue for Voyager and Coinbase especially.
Crypto miners also rallied in the month. Marathon Digital (NASDAQ:MARA) and Riot Blockchain (NASDAQ:RIOT) would expose investors to the space. Both firms increased their mining capabilities. As bitcoin’s value rises, the value of the mined coins increases. This would lift both MARA and RIOT stock.
Tech investors who supported Microstrategy (NASDAQ: MSTR) may buy the stock for the bitcoin exposure. The firm leveraged its balance sheet by taking debt and investing the proceeds into bitcoin.
Bitcoin has a bright future. The U.S. Federal Reserve refuses to admit inflation is a problem. The Fed will not hike interest rates. This weakens the dollar and currencies, increasing the attractiveness of digital currency.
