$110K Bitcoin Is Back! Should You Trade Crypto Stocks Today?

Mickey082024
07-09

$Riot Platforms(RIOT)$ $Coinbase Global, Inc.(COIN)$ $MARA Holdings(MARA)$

Bitcoin has done it again. After a long, grinding bear market that tested the patience of even the most hardened hodlers, the world’s largest cryptocurrency is back above $110,000, smashing through its previous all-time highs and reigniting investor excitement across global markets.

Crypto bulls are celebrating this milestone as a validation of Bitcoin’s role as both a store of value and a speculative growth asset. Meanwhile, the surge in Bitcoin prices has also sparked a flurry of activity in crypto-related stocks, including miners, exchanges, and blockchain infrastructure plays.

But as tempting as it is to chase the rally, investors need to ask: is this sustainable, or another frothy top? And more importantly, does it make sense to express a bullish view on Bitcoin by buying crypto-related equities rather than holding BTC itself?

In this article, we’ll break down the drivers of Bitcoin’s latest breakout, analyze the opportunities and risks of trading crypto stocks at this stage of the cycle, highlight key stocks and ETFs to watch, and offer perspective on how to position for what comes next.

Bitcoin’s Breakout: What’s Driving The Rally?

Bitcoin’s climb past $110,000 is fueled by a confluence of fundamental, technical, and macroeconomic factors.

Institutional Adoption: In 2024, several major U.S. spot Bitcoin ETFs were approved and launched, attracting billions of dollars of inflows from institutional investors and wealth managers who previously sat on the sidelines. This new access vehicle has deepened liquidity and lent legitimacy to Bitcoin as a mainstream asset.

Monetary Policy Tailwinds: With the Federal Reserve signaling the end of its tightening cycle and beginning to cut rates in the face of slowing growth, real yields have declined, making hard assets like Bitcoin more attractive.

Scarcity Narrative: The most recent Bitcoin halving, which cut the block reward in half again, reduced the flow of new supply just as demand was increasing — creating a classic supply/demand imbalance.

Geopolitical Uncertainty: Ongoing conflicts and concerns about dollar hegemony have also reinforced Bitcoin’s appeal as a hedge against fiat debasement and geopolitical risk.

Together, these forces have created the perfect storm, pushing Bitcoin not just past its 2021 highs, but well into uncharted territory. Technical traders point to strong momentum, while on-chain data shows that long-term holders have continued to accumulate even at these higher prices.

Crypto Stocks: Leveraged Plays Or Risky Proxies?

For many equity investors, Bitcoin’s rally has been a reminder that you don’t need to own BTC directly to benefit from the trend. Crypto-related stocks — from miners to exchanges to infrastructure firms — tend to act as high-beta plays on Bitcoin, often amplifying its moves.

Why Consider Crypto Stocks?

  • Accessibility: Stocks and ETFs can be bought in traditional brokerage accounts.

  • Leverage: Many miners and service providers see revenue and earnings rise faster than the price of Bitcoin itself due to operating leverage.

  • Diversification: Some companies have multiple lines of business, including non-crypto operations, which can cushion downside.

But Beware The Risks:

  • High correlation to Bitcoin makes them vulnerable to sharp drawdowns.

  • Company-specific risks, like poor cost management or regulatory trouble, can decouple stock performance from BTC price.

  • Dilution: Many miners and startups issue equity to fund operations, diluting shareholders.

So while crypto stocks can enhance returns in a bull market, they also introduce risks that don’t exist with direct Bitcoin ownership.

Sectors And Names To Watch

Within the universe of crypto-related equities, several sub-sectors offer different risk/reward profiles.

1. Miners

Bitcoin miners are often the most sensitive to BTC price movements, as their revenue is directly tied to the price of Bitcoin minus their cost of production.

  • Riot Platforms (RIOT): One of the largest publicly traded miners, known for aggressive growth plans.

  • Marathon Digital (MARA): A pure-play miner with one of the largest self-mining fleets.

  • CleanSpark (CLSK): Focuses on energy-efficient mining and has been expanding capacity aggressively.

These names tend to outperform when BTC rallies sharply, but can also collapse during bear markets due to their high fixed costs.

2. Exchanges & Brokerages

Trading volume tends to surge in bull markets, driving revenue growth for exchanges.

  • Coinbase (COIN): The most prominent U.S.-listed exchange, Coinbase benefits from rising spot and derivatives trading. Its growing institutional custody and staking businesses add diversification.

  • Robinhood (HOOD): Though not a pure-play, Robinhood’s crypto trading segment becomes more significant as retail activity picks up.

3. Blockchain Infrastructure & Picks-And-Shovels

These firms enable blockchain development and adoption.

  • Block (SQ): Formerly Square, Block’s Cash App and Bitcoin initiatives make it an indirect play on crypto adoption.

  • Hut 8 Mining (HUT) and Bitfarms (BITF): Smaller miners that offer higher beta exposure to BTC.

4. ETFs

For those looking for diversified exposure, ETFs like the Bitwise Crypto Industry Innovators ETF (BITQ) or the Valkyrie Bitcoin Miners ETF (WGMI) offer baskets of miners and infrastructure stocks.

Key Insights For Investors

To help you make sense of Bitcoin’s breakout and the opportunity in crypto stocks, here are seven key insights:

  1. Bitcoin’s Rally Is Broad-Based: Institutional inflows, favorable monetary policy, and reduced supply are all contributing to Bitcoin’s strength above $110,000.

  2. Crypto Stocks Magnify Moves: Miners and exchanges often deliver 2–3x the move of Bitcoin during upswings — and downswings.

  3. Valuations Are Already Elevated: Many miners trade at high multiples of book value and future earnings, reflecting market optimism.

  4. Regulatory Risk Remains: Both crypto assets and companies face continued scrutiny from regulators, especially in the U.S.

  5. Not All Stocks Are Equal: Some companies are better managed, better capitalized, and more efficient operators than others. Stock selection is key.

  6. ETFs Reduce Single-Name Risk: For those who want exposure without picking individual winners, thematic ETFs provide diversification.

  7. Timing Matters: Crypto stocks tend to be extremely volatile. Entering after parabolic moves requires caution and a long-term mindset.

Positioning For The Next Leg

If you believe Bitcoin has room to run even higher, there’s still a case to be made for allocating to crypto stocks. But it’s crucial to scale into positions prudently rather than chasing euphoric rallies.

Strategies To Consider:

  • Start Small: Initiate small positions and add on pullbacks rather than going all-in at highs.

  • Diversify: Combine miners, exchanges, and infrastructure names to spread risk.

  • Use ETFs: For simplicity and diversification, thematic ETFs can provide efficient exposure.

  • Monitor Metrics: Watch Bitcoin’s price action, hash rate, miner margins, and trading volumes to gauge the health of the ecosystem.

  • Stay Informed: Regulatory developments, ETF inflows, and macro trends will continue to influence the narrative.

Investors with a high risk tolerance and a 3–5 year time horizon may still find value in select crypto stocks even after big runs — provided they’re prepared for volatility.

Conclusion: Don’t Lose Perspective

Bitcoin crossing $110,000 is a milestone worth celebrating, but it’s also a reminder of the cyclical and often speculative nature of this asset class. For those already long Bitcoin, trimming some gains and reallocating into higher-quality stocks or ETFs might help manage risk. For those just entering, patience and prudence are key.

Crypto stocks can amplify your exposure to Bitcoin’s upside — but they also come with unique company-level risks and amplified volatility. Investors should carefully assess whether they prefer direct Bitcoin exposure or the leveraged but riskier path of crypto equities.

In the end, there’s room in a diversified portfolio for both — provided you size positions appropriately, stay focused on fundamentals, and avoid getting swept up in speculative mania.

As always: in crypto markets, timing may be hard to perfect — but strategy is everything.

Disclaimer: I want to make it clear that I am not a financial advisor, and nothing I say is intended to be a recommendation to buy or sell any financial instrument. Additionally, it's important to remember that there are no guarantees or certainties in trading or investing, and you should never invest money that you can't afford to lose.

@Daily_Discussion @TigerPM @TigerObserver @Tiger_comments @TigerClub

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Comments

  • Merle Ted
    07-09
    Merle Ted
    MARA needs to do what Coreweave did. Put your computing power to good use.

  • Valerie Archibald
    07-09
    Valerie Archibald
    Crypto moves fast—but only if you know where to look.
  • AmandaViolet
    07-09
    AmandaViolet
    Wow, what an exciting time for crypto! [Wow]
  • fizzik
    07-09
    fizzik
    This rally sure feels exhilarating
  • Brando741319
    07-10
    Brando741319
    Good
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