3 Crypto Stocks Poised for Price Boost From Presidential Election
These three crypto-focused companies might see their stock prices soar as a Harris, Trump showdown comes into view.
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I’m often asked how the U.S. presidential election, which occurs in just over three months, will affect stocks. While presidents do exert influence on markets, other factors like Congress, the economic cycle and the machinations of the U.S. Federal Reserve and U.S. Treasury, must also be considered.
One market is a clear exception: the cryptocurrency markets. As a new and mostly unregulated market, the Fed, the U.S. Treasury and the economy have little influence. It’s safe to say that U.S. presidential policy will be felt strongly in the world of crypto.
Cryptocurrency-related stocks caught a bid on Monday after President Biden’s decision to bow out of the 2024 presidential race. Biden’s likely replacement, Vice President Kamala Harris, has been relatively quiet on the topic of crypto, while former President Trump is considered pro-crypto. Trump is scheduled to appear at a bitcoin conference in Nashville later this week.
If Harris matches Trump’s stance and proves to be pro-crypto, it would be amazing news for crypto-focused stocks. With two crypto-friendly candidates, this highly speculative sector could take off prior to the election.
Let’s evaluate the stocks with the greatest potential in this sector:
1. MicroStrategy (MSTR)
Virginia-based software company MicroStrategy MSTR doubles as a bitcoin holding company. Last month, MicroStrategy reported ownership of 226,331 bitcoin at an average purchase price of $35,158.
On Monday, MicroStrategy closed at a three-month high. The stock trades well above its 50-day (blue) and 200-day (red) moving averages, and is within 6% of its all-time high, set on March 27, 2024 (arrow).
MicroStrategy owns more than 1% of the total number of bitcoin in circulation. The maximum number of bitcoin that can potentially exist is widely believed to be 21 million. Grade: A.
2. Coinbase Global (COIN)
Like MicroStrategy, San Francisco-based crypto exchange Coinbase COIN is trading at a three-month high, and is comfortably above its 50-day (blue) and 200-day (red) moving averages.
Coinbase is just 5% away from reaching a multi-year high, but trades well below its all-time high of $357, set on November 9, 2021. Grade: B+.
3. Hut 8 Corp. (HUT)
One of the more speculative names in this sector, Hut 8 has already gained over 60% this year. Last week, shares of the Miami-based crypto mining operation reached a 52-week high. Hut 8’s 50-day (blue) and 200-day (red) moving averages formed a golden cross on June 26 (arrow), a bullish momentum signal.
Hut 8’s market cap is below $2 billion, and this highly speculative stock has a reputation for volatility. The company’s name is derived from a British World War II code-breaking school that was once led by Alan Turing. Grade: B.
At the time of publication, Ponsi was long MSTR.
