Bitcoin, currently at $38,410 with a 2% gain, has been on an upward trajectory since October. Market optimism stems from expectations of a potential approval for a spot exchange-traded fund (ETF), seen as a catalyst for increased capital investments in the digital asset sector. Noelle Acheson, a crypto-focused economist, attributes the ongoing Bitcoin rally to factors such as growing expectations for a spot ETF, the resolution of uncertainty surrounding Binance, and the anticipation of accelerated money printing in 2024.

Crypto-Linked Stocks Benefit

Pre-market trading saw gains for shares of Bitcoin mining companies, including Riot Platforms, Marathon Digital, Cipher Mining, and TeraWulf, ranging from 2.4% to 4%. J.P. Morgan responded to the Bitcoin rally by raising price targets for Cipher Mining, CleanSpark, Iris Energy, Marathon Digital, and Riot Platforms.

Shares of Bitcoin mining machine manufacturer Canaan also increased by nearly 4%. Mining companies are ramping up production ahead of Bitcoin’s upcoming “halving” event in 2024, where rewards for token production will be halved.

Coinbase’s Performance and Positive Outlook

Coinbase‘s shares rose by 2.6%, building on November’s 62% jump, outperforming Bitcoin’s 11% climb. Despite a reported decline in trading volume earlier in November, CFRA Research analyst Michael Elliott remains optimistic, stating that higher crypto prices should lead to increased transaction volume and revenues for Coinbase in 2024. However, he noted potential legal challenges and regulatory uncertainties that could contribute to stock volatility.

ETF Approval Expectations Counter Concerns

Investors remain hopeful for ETF approval, countering recent concerns following Changpeng Zhao‘s departure from Binance and his guilty plea to violating U.S. anti-money laundering laws. Other premarket gainers include U.S. software developer and bitcoin investor Microstrategy, up nearly 5%, and ProShares Bitcoin Strategy ETF, which added 2%.