Nasdaq Jumps With Bitcoin: MSTR, MARA, COIN Shine on Tech and Crypto Optimism

What’s Driving the S&P 500, Nasdaq, and Bitcoin Today?

The S&P 500 rose 0.4% on Monday, while the Nasdaq Composite climbed 0.8%, as technology stocks kicked off the week on solid footing ahead of a key Federal Reserve meeting. Investors are widely anticipating an interest rate cut that could fuel further gains for risk assets. Bitcoin surged above $106,000, marking a fresh all-time high and sending waves through crypto-related equities. Notably, MicroStrategy (MSTR), set to join the Nasdaq-100 and the Invesco QQQ ETF, is drawing attention as institutional exposure increases.

What Fueled Bitcoin’s Push Past $106,000, and What’s Next?

Bitcoin rallied to $106,888 on Sunday evening, breaking its previous record. Although the price pulled back slightly, it remains above $106,000 as of Monday. The cryptocurrency is up 8% for December, 50% since the U.S. presidential election, and 145% for the year. Optimism about a potential interest rate cut this week has fueled the gains. According to the CME FedWatch Tool, there is a 96% chance of a 25-basis-point reduction, which could boost Bitcoin further as it often trades like a tech stock in response to falling rates.

Why Is MicroStrategy (MSTR) Benefiting From Nasdaq-100 Inclusion?

MicroStrategy (MSTR) surged 4% after the announcement that it will join the Nasdaq-100 index and the Invesco QQQ ETF later this month. This inclusion positions MSTR for greater institutional buying, as index funds will be required to allocate to the stock. MicroStrategy’s aggressive Bitcoin strategy continues to pay off, with 439,000 BTC acquired for $27.1 billion now showing a $19.1 billion profit on paper. Shares climbed 4.49% on Monday to $427, nearing recent highs.

Can Coinbase (COIN) and Robinhood (HOOD) Maintain Their Momentum?

Coinbase Global (COIN) rose 3.19% to $320.50, buoyed by Bitcoin’s price surge and rising crypto trading activity. As the leading U.S. crypto exchange, Coinbase stands to benefit from increasing volumes and growing investor interest in digital assets. Robinhood Markets (HOOD), which also gains from retail trading activity, jumped 5.27% to $42.32, reflecting renewed enthusiasm for the broader crypto market.

What’s Driving MARA and Bitcoin Miners Higher?

Bitcoin miner MARA Holdings (MARA) saw a significant move, climbing 8.4% to $24.64. Higher Bitcoin prices directly improve miner profitability, as production costs remain steady while revenues rise. MARA’s sharp rebound highlights investor appetite for leveraged plays tied to Bitcoin’s performance. If Bitcoin sustains its upward trend, mining stocks could see further gains.

What Could Drive QQQ Higher From Here?

The Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, climbed 1.06% to $536.18. QQQ continues to benefit from strong performances in growth stocks, particularly those tied to technology and crypto. The upcoming Fed decision could provide additional tailwinds if rate cuts materialize, further supporting tech-heavy ETFs like QQQ.

Market Forecast: Where Could Bitcoin and Crypto Stocks Head Next?

The outlook remains bullish for Bitcoin and related equities as traders await the Federal Reserve’s rate decision. If the Fed cuts rates by 25 basis points as expected, Bitcoin could test levels above $110,000, driving further upside in MicroStrategy, Coinbase, Robinhood, and MARA. Traders should closely monitor the Fed’s tone for clues about additional cuts in 2024, as any dovish signals could amplify the current rally in tech and crypto stocks.

More Information in our Economic Calendar.