Bitcoin Surges Toward $72,000 as Crypto Stocks Soar, Strategy Jumps Another 10%

TradingKey - Bitcoin price surges toward $72,000, driving a collective rally in crypto concept stocks, with MicroStrategy extending gains by 10%.

In pre-market trading on August 20, Eastern Time, Bitcoin (BTC) surged over 11%, rallying toward $72,000 and standing at $71,720. The strong performance of Bitcoin is driving a collective surge in US crypto-related stocks, among which MicroStrategy (MSTR) surged nearly 10% again in a single day, Coinbase (COIN) and Circle (CRCL) both rose over 6%, while Robinhood (HOOD) gained over 4%.

Bitcoin price chart, Source: TradingView

Yesterday, crypto-related stocks already experienced a broad rally, with MicroStrategy surging nearly 13%, Coinbase and Circle gaining nearly 10%, and Robinhood rising nearly 5%. MicroStrategy led gains in the crypto concept sector for two consecutive days, primarily because it is the public company holding the most Bitcoin globally, making its stock price volatility naturally leveraged to Bitcoin. When BTC prices surge, the unrealized profits on its balance sheet expand massively, which, combined with the net asset value (NAV) premium given by the market, attracts a flood of institutional capital chasing leveraged Beta.