Bitcoin and XRP Struggle Again. Why Coinbase, Robinhood, and Strategy Stocks Are Rising. — Barrons.com
By Callum KeownBitcoin and other cryptocurrencies remained stuck in a rut Thursday but crypto-exposed stocks were set for gains.Bitcoin was trading at $87,348, rising 0.7% over the past 24 hours, according to CoinDesk. The world's largest cryptocurrency remains stuck below $90,000, having fallen more than 4% in December and off 31% from its record high of almost $127,000 reached in early October.Other digital assets were struggling Thursday-- Ethereum, the second largest crypto, was down 2.6% to $2,848, while popular altcoin XRP fell 2.3% to $1.86.However, crypto-related stocks looked set for a better day. Trading platform Robinhood Markets and exchange Coinbase Global were both up more than 2% ahead of the open. Strategy, the largest corporate holder of Bitcoin, rose 1.9% in premarket trading.Coinbase unveiled plans to move toward being an "everything exchange," announcing a partnership Wednesday with prediction-markets company Kalshi and the rollout of stock trading.But beyond that development, the boost for the stocks has more to do with timing than any unusual divergence starting to emerge.When the stock market closed Tuesday, Bitcoin was trading at close to $88,000. But by the close Wednesday, it was barely above $86,000. That meant a sharp selloff in crypto stocks in Wednesday's session--Strategy fell more than 4%, Coinbase declined 2.4%, and Robinhood fell 3%.With Bitcoin now up a bit overnight and up modestly over the past 24 hours, it explains the tentative rebound in equities exposed to digital assets.But it also highlights just how volatile crypto stocks are, and what just a $2,000 move in Bitcoin can do.As digital assets trade 24/7, the typically quiet holiday period may not be so sedate for crypto stocks.Write to Callum Keown at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.