Thu, May 09, 2024 at 09:31

• 

  Joy

  • Hey Annie!

  • Got some hot crypto news for ya!

  • Bitcoin's price more than doubled over the past year, thanks to the approval of its first spot price ETFs, halving of mining rewards, and stabilizing interest rates.🚀

  • 
• Annie

  • Wow, that's impressive!😮 But how did this affect other stocks?

  
• 

  Joy

  • Great question!

  • This rally set stocks like Coinbase and MicroStrategy on fire.

  • Coinbase's stock rallied more than 280% and MicroStrategy's over 270% in the past year!🔥

• Annie

  • That's a huge increase!

  • But why did Coinbase's stock rise so much?

  
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• 

  Joy

  • Coinbase makes most of its money from transaction fees, so when the crypto market grows, so does Coinbase.

  • In 2023, it made 34% of its trading volume from Bitcoin, 20% from Ether, and 11% from stablecoins.

  • The rest came from smaller altcoins and other crypto assets.

• Annie

  • I see.

  • And what about MicroStrategy?

  • Why did their stock rise?

  
• 

  Joy

  • MicroStrategy is a software company that started buying up Bitcoin in 2020.

  • By the end of the first quarter of 2024, it had spent $7.54 billion on buying 214,400 Bitcoins at an average cost of $35,180 per Bitcoin.

  • Now, those Bitcoins are worth $13.8 billion!💰

• Annie

  • Wow, that's a lot of Bitcoin!

  • 

  • But isn't it risky to invest so much in Bitcoin?

  
• 

  Joy

  • You're right, it is risky.

  • MicroStrategy is taking on more debt to buy Bitcoin, and analysts expect it to become unprofitable again this year because of the costs associated with its Bitcoin purchases.

  • 
• Annie

  • Hmm, that doesn't sound good.

  • So, which stock is a better buy right now?

  
• 

  Joy

  • According to analysts, Coinbase is the better buy.

  • It's growing faster and trades at lower valuations than MicroStrategy.

  • Plus, it's a key player in the growing cryptocurrency market.

• Annie

  • I see.

  • So this news is good for investors interested in Coinbase?

  
• 

  Joy

  • Absolutely!

  • This news is great for anyone interested in investing in Coinbase.

  • 

  • It shows that the company is growing and has a strong position in the crypto market.🎉

  • To sum up, this article is considered a 😍Bullish for investors!!