As you may know, Bitcoin has seen a recent spike in price. This recent rally has caused an effect in more than just the price of Bitcoin, though. Any company associated to Bitcoin also had a great day with the prices of the token surging so much.
Now, Riot Blockchain (RIOT) has gained 20% in its Nasdaq stocks because of how the crypto market is. This made the currency outperform many cryptocurrencies, even the ones which were having a good day in the market today.
Bitcoin has recently just passed the important $4,200 USD level and this is great for the whole market. Obviously, people got hyped and prices spiked a lot today. It is not different in the most traditional trading markets. Investors also get overhyped often and this is part of what happened with Riot Blockchain, but not the only part of the explanation.
For instance, you have to look at the future plans of the company, too, in order to understand it well. The company is mostly focused on cryptocurrency mining so far, but it also has defined plans to launch a crypto exchange soon. This is important to understand the change in price.
The prices were affected in part because there is an apetite for Bitcoin and its relatives, but also because of the company’s own plans.
Bitcoin Goes Up In Google Trends
The price spike was also very important to Bitcoin awareness. According to Google’s trending numbers, Bitcoin is ready to explore once more. There is plenty of interest in Bitcoin right now and Bitcoin is number 2 in Google Trends at the moment.
If you are thinking about launching an exchange, one of the most important fundamental metrics will be if there is interest in that and it looks like the interest in BTC is being revived in the industry.
This has led the company to see tremendous gains in the last few weeks. It looks like Bitcoin is gearing up to a new bull run this year and many investors who are looking for some exposure to crypto markets in order to dip their toes are starting to look for more traditional stocks which can mimic Bitcoin, as the exchange-traded fund (ETF) is far from a reality right now.
Don’t get too overhyped with its stocks, though. You should remember that crypto mining is actually a very cyclical process and that several companies end up having bad times soon after the good ones because they are so reliant on outside factors.