Cryptocurrency stocks, including Coinbase Global (NASDAQ:COIN) and MicroStrategy (NASDAQ:MSTR), gained about 7% and 5%, respectively, in yesterday’s trading session. The upside can be attributed to Bitcoin (BTC-USD) surpassing the $72,000 mark ahead of the Bitcoin halving event, expected on April 18.
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Are you wondering what this event is about? The halving is a pre-programmed event occurring once every four years. It reduces the block reward for mining new Bitcoins by 50%, effectively decreasing the issuance of new coins.
Could BTC Hit a New High?
Historically, halving events have been associated with substantial price increases for Bitcoin. This is due to the reduction in new supply, which, when combined with existing or increasing demand, can push prices upward.
Furthermore, the expectations of potential price gains are likely fueling the current market optimism, with Bitcoin expected to hit a new all-time high of over $73,737, ahead of this event.
What Is the Best Crypto Stock?
Apart from BTC, other digital tokens such as Ethereum (ETH-USD) and Solana (SOL-USD) increased by about 6% and 1%, respectively. Also, meme coins joined the uptrend as Dogecoin (DOGE-USD) climbed by nearly 5%. Thus, crypto stocks are expected to remain in the spotlight ahead of the halving event.
When comparing COIN and MSTR, analysts are optimistic about MicroStrategy stock. It has a Strong Buy consensus rating based on four unanimous Buys. After an impressive rally of 140% so far this year, the analysts’ average stock price target on MSTR stock of $1,686.67 implies an 11.48% upside potential.
