Cryptocurrencies are rallying alongside equities as Bitcoin’s (BTC-USD) price tops $68,000, its highest level since July of this year.
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Bitcoin has gained nearly 10% over the past week and was trading as high as $68,300 early on October 17 before paring some of those gains. Ethereum (ETH-USD), which is the second largest cryptocurrency by market capitalization after Bitcoin, has seen its price rise 7% over the last week.
Lesser-known cryptocurrencies such as Solana (SOL-USD) and Dogecoin (DOGE-USD) have each seen their prices rise more than 10%. Cryptocurrencies trade around the clock, seven days a week. Analysts say the latest increases in crypto prices mirror the rise in U.S. equities, with both the benchmark S&P 500 index (SPY) and the blue-chip Dow Jones Industrial Average (DIA) at all-time highs.
Crypto Bulls Embrace “Uptober”
October has traditionally been the best month of the year for cryptocurrency in terms of its performance, leading many crypto investors to refer to the month as “Uptober.” The current rally is likely a welcomed relief to cryptocurrency bulls. After reaching an all-time high of just under $74,000 in March of this year, Bitcoin declined sharply throughout the spring and traded sideways for most of the summer.
The latest gains are also lifting stocks of companies associated with crypto, such as exchange Coinbase Global (COIN), which has seen its share price rise 14% in the past five days. Spot exchange-traded funds (ETFs) that track the price movements of Bitcoin and Ethereum also continue to be popular. Since January, investors have allocated more than $60 billion to Bitcoin ETFs, according to industry data.
Year-to-date, Bitcoin has gained 52%, outpacing the benchmark S&P 500 index that is up 23%.
Is Coin Stock a Buy?
The stock of cryptocurrency exchange Coinbase Global has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on seven Buy, seven Hold, and one Sell recommendations made in the last three months. The average COIN price target of $258.17 implies 26.26% upside potential from current levels.
