Crypto stocks MARA, COIN, Strive, MSTR rally as a bull run starts, but risks remain

Top crypto stocks are in a strong rally this week, helped by the ongoing Bitcoin and altcoin comeback. Strive stock jumped to $17.14, its highest level since June 15 and 62% above its lowest level this month. 

MARA Holdings soared to $11.6, up by nearly 35% from this month’s low. Other top stocks like MSTR, Coinbase, and CleanSpark have also jumped by double digits in the past few weeks and this trend may continue if the crypto rally gains steam.

Crypto stocks rally as Bitcoin jumps

The main driver for the ongoing surge in crypto stocks is the fact that Bitcoin and most altcoins have rebounded. Bitcoin surged to $76,340, its highest level since May this year. It has surged by over 30% from its lowest level this year.

Ethereum price jumped to $2,400, up sharply from the year-to-date low of $1,515. In all, the market capitalization of all tokens has moved to $2.5 trillion. 

The rally has coincided with the ongoing jump in the Crypto Fear and Greed Index, which has moved to the greed zone of 65. In most cases, Bitcoin and most altcoins thrive when there is a sense of greed among market participants.

Bitcoin is also rising as American institutional and retail investors pile in. Spot Bitcoin ETFs added $606 million in assets on Thursday, much higher than the $517 million they added a day earlier. They have added over $1.6 billion in inflows this week, the best weekly performance since October last year. The real figure may be higher than this if they experience more inflows today.

Other altcoin ETFs have also added substantial inflows. Ethereum ETFs have added $512 million this week, bringing the cumulative net inflows to nearly $12 billion. XRP ETFs added over $21 million in inflows, while Solana funds added $18.2 million. 

Bitcoin is rising as investors embrace its role as a hedge as the US debt surge. It crossed the $40 trillion mark this week. Trump’s two terms have added over $11.6 trillion of this debt, and this trend may continue in the foreseeable future.

The rally has also coincided with the upcoming end of summer, a period when many people are travelling.

Crypto rally boosting companies in the industry

Top companies in the industry are benefiting from the ongoing crypto rally. Michael Saylor, the most embattled one is benefiting as the value of its Bitcoin holdings jump. The company holds 840k coins worth over $64 billion. At Bitcoin’s low this year, these coins were worth about $48 billion. 

Strive, which Vivek Ramaswamy backs, owns 20,246 coins now valued at over $1.56 billion. Bitcoin mining companies like MARA Holdings and CleanSpark, which hold 35,577 and 13,930 coins, respectively, 

Other companies in the industry like Bullish, Coinbase, and Gemini have also surged this week, with investors hoping that the resurgence will lead to more transaction volume. 

Crypto stocks face some risks

Still, top crypto stocks face some substantial risks that may affect their performance. One of the core risks is that the ongoing rally may be a dead-cat bounce, which is a temporary comeback that results in a reversal. 

Technically, there are signs that Bitcoin has moved to an extremely overbought level. The Relative Strength Index (RSI) has jumped to 85, its highest level since November 2024. In most cases, assets in extremely overbought levels tend to reverse as investors book profits.

Additionally, there are risks associated with the bond market, with the US long-term yields resuming their uptrend. The 30-year yield jumped to 5.246% today, and is slowly nearing the year-to-date high. Soaring bond yields may lead to volatility across all assets.