The stock of MicroStrategy, MSTR, led the market with a triple-digit increase in the first half of the year. A strong rebound in the first half, increased regulatory clarity, the upcoming ETH ETF launch, and expected interest rate cuts by the Federal Reserve are key catalysts for the second half of 2024.
Cryptocurrency-related stocks and Bitcoin mining stocks emerged as the biggest winners in the first half of this year, with MicroStrategy’s MSTR stock leading the pack with a triple-digit rise.
According to the recent CCData report “Outlook for the Second Half of 2024,” MSTR reported a staggering 380% performance, attributing this to its substantial holding of BTC.
“The rise in MicroStrategy’s stock price by 380% is due to its holding of 214,000 Bitcoins, currently valued at $13.3 billion, with an average purchase cost of $35,158 per coin. These holdings have brought the company approximately $6.54 billion in profits since 2020.”
BTC mining stocks and overall market performance
Additionally, the report highlights impressive surges in other cryptocurrency-related stocks like Coinbase [COIN] and Robinhood [HOOD], which rose by 329% and 122%, respectively.
Cryptocurrency mining stocks also saw significant recoveries. Following the halving event in April, stocks like Hut 8 Corp (Hut) and Bitfarms Ltd (BITF) increased by 86% and 34%, respectively, outperforming Bitcoin. However, Hut itself saw a 3.2% decline during the same period.
Regarding spot BTC ETFs, the report indicates that these products “have seen increased institutional adoption,” attracting “inflows of $14.41 billion, bringing total net assets to $53.56 billion. These ETFs currently represent about 4.4% of the total Bitcoin market value. The IBIT ETF alone attracted nearly $17.64 billion, accounting for over 1.5% of the Bitcoin market value.”
CEX market share dynamics
There has been significant growth in the Centralized Exchange (CEX) industry, with spot trading volume in the first half of the year totaling $10.6 trillion, a 145% increase from the second half of 2023.
The report further notes, on market share dynamics, that “Bitget, Crypto.com, and Bybit saw the largest increases, at 38.4%, 24.6%, and 22.2% respectively, while Coinbase saw a smaller increase of around 6.0%.”
Bitcoin and cryptocurrency market outlook for the second half of 2024
The report emphasizes that the performance in the first half may set a solid foundation for the second half. Particularly noteworthy are expected interest rate cuts by the Federal Reserve later in 2024 and the upcoming Ethereum ETF launch, seen as key market catalysts.
Furthermore, the increasingly clear regulations in the United States and the European Union (via MiCA) are also viewed as essential catalysts for the second half. In fact, recent July outlook reports from AMBCrypto echo these optimistic prospects, especially for Bitcoin and altcoins.