Crypto Mining Stocks Surge Following OpenAI-CoreWeave Deal and Galaxy Nasdaq Debut
On Friday, cryptocurrencies showed little movement, with bitcoin around $104,000. In contrast, crypto-related stocks experienced significant gains:
- Cipher Mining (CIFR), Hive Digital (HIVE), Hut 8 (HUT), and TeraWulf (WULF) rose 10%-20% due to optimism surrounding AI computing demand.
- CoreWeave (CRWV) surged over 26% after signing a $4 billion deal with OpenAI.
- Galaxy Digital (GLXY) increased by 8% on its Nasdaq debut.
- Coinbase (COIN) rebounded 9% following a drop related to a customer data breach and SEC scrutiny.
- DeFi Development (DFDV) jumped 45% on a partnership with BONK and additional SOL token purchases.
Bitcoin held steady above $104,000, up 1.3%, while ether gained 2.3% to $2,580. The CoinDesk 20 Index remained flat, with XRP underperforming after a U.S. judge rejected Ripple's settlement proposal with the SEC.
Inflation Expectations Rise
The University of Michigan's latest inflation survey revealed that consumers expect one-year inflation to rise to 7.3%, the highest since the 1980s. Five-to-ten-year expectations increased to 4.6%, also a multi-decade high. Concerns about rising inflation may impact Federal Reserve rate decisions in coming months.