After a troubling start to August, it appears that investors' risk tolerance is widening as Coinbase Global (NASDAQ:COIN), MicroStrategy (NASDAQ:MSTR) and other crypto-related stocks are grinding higher in Wednesday afternoon trading as bitcoin (BTC-USD) bounces.
As some view bitcoin (BTC-USD) as a leading indicator of risk sentiment, it's not surprising that all three major U.S. stock indices are also in the green, led by the tech-heavy Nasdaq (COMP.IND) +2.7% amid the latest round of corporate earnings.
From a purely technical perspective, bitcoin (BTC-USD) is changing hands above its 200-day weekly moving average -- standing at around $22.9K at the time of writing -- suggesting that renewed interest in the crypto market is taking hold.
In addition, bitcoin-focused funds last week experienced inflows of $85M, while short-bitcoin funds saw outflows of just $2.6M, GlobalBlock analyst Marcus Sotiriou wrote in a note, citing data from CoinShares. "This is the first week of outflows for the short-Bitcoin product after a 5-week run of inflows," he added.
When compared with other crypto-related stocks, most of which are catching a bid intraday, Coinbase (COIN) +19.4% and MicroStrategy (MSTR) +12.7% are certainly taking the lead. Crypto miner stocks such as Hut 8 Mining (HUT) +10.8%, Bitfarms (BITF) +7.7% and Core Scientific (CORZ) +5.5% are seeing solid gains as well.
Earlier, two senators unveiled a bill that would put bitcoin and ether within the scope of the CFTC.