The recent rise in the price of Bitcoin has had a major impact on the performance of companies related to cryptocurrency mining and trading, with most companies making double-digit profits in a single month.
February is shaping up to be a standout month for Bitcoin, as the leading cryptocurrency is up more than 45% this month, marking its biggest monthly gain since December 2020. The bullish uptrend contributed to the index's 36% rise. The digital asset-related company has shown a remarkable recovery from its more than 20% decline in the previous month.
Widespread enthusiasm for cryptocurrencies became clear on Wednesday, as Coinbase, a major U.S. cryptocurrency exchange, experienced a service outage due to increased activity. Despite this issue, Coinbase's value increased by more than 56% in February alone, after falling 26% the previous month, making it its most successful month since November.
Alongside Coinbase, other crypto-related companies such as Marathon Digital Holdings Inc., Riot Platforms Inc., and Bit Digital Inc. are also poised to reverse previous losses and end February on a positive note.
After a tough January, this group of companies has rebounded, in part due to the SEC's approval of a Bitcoin-focused ETF on January 11th. This resurgence follows a year of significant gains for the industry in 2023.
However, it is important to note that while companies associated with Bitcoin often benefit from rising prices, their stock prices may also fall if the value of the cryptocurrency declines.
