Bitcoin’s surge triggers price hike in Asian cryptocurrency stock valuations

2019 continued to bloom and cultivate more positive news for the crypto-community, with Bitcoin taking the lead and surging to breach new resistances ever week. While the coin briefly breached the $11,000 mark last week, at press time, Bitcoin was valued at over $10, 500 The coin’s valuation was its highest in 15 months, and marked the overhaul of the bear market that had crippled cryptocurrencies towards the end of 2018.

According to a report by Bloomberg, the Bitcoin’s price surge has also driven Asian stock market prices, with major gains being witnessed. It was reported that various companies like GMO Internet Inc. witnessed a 7 percent hike in Tokyo, Vidente Co. surged by 5.4 percent in Seoul, and Woori Technology Investment Co. rose by 4.6 percent. Other organizations like Remixpoint Inc. and Metaps Inc. also witnessed a growth of 6.2 percent and 11 percent, respectively.

The surge in prices came as a surprise for the community as it was previously reported by Bloomberg that Asian crypto-related stocks were unaffected owing to Bitcoin’s recent surges.

Supun Walpola, an analyst with LightStream, said,

“Bitcoin resurgence should be a definite reason behind these gains. Going long on stocks that have exposure to cryptocurrency is something that we have seen in the past during a Bitcoin/cryptocurrency bull run–especially with those who want to avoid the volatility of crypto but at the same time want to have some exposure into these markets.”

Source: Bloomberg

It was also suggested that the recent gains recorded by the markets had a different effect on cooperations like GMO, when compared to Remixpoint. The report indicated that GMO would be taking more interest in the Bitcoin mining business after they move their servers to a new location with affordable electricity. GMO’s shares were up by an astounding 34 percent this year.

However, history suggests that such methods guaranteed quick success for only a brief period of time. Wapola added,

“While investors see stocks as a chance to cash in at relatively lower risk, “such strategies have often gone wrong when crypto markets turn red — which could happen just about at any time.”

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