opinion

Crypto SWOT: Crypto-linked stocks rose last week after Bitcoin hit a record high. Will the climb continue?

Kitco Media
By Frank E Holmes
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Crypto SWOT: Crypto-linked stocks rose last week after Bitcoin hit a record high. Will the climb continue? teaser image

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the top performer this week was MemeCore, which surged 1,137.69%.
  • Bitcoin options traders are betting on even higher prices as the cryptocurrency extends its record-breaking rally, with open interest concentrated around call options at $115,000 and $120,000 strike prices. The rally triggered a major unwinding of short positions, with over $1 billion in bearish bets liquidated, according to Bloomberg.
  • Bitcoin surged past $112,000 for the first time, setting a new record alongside a broad rally in risk assets. The move highlights the speculative momentum gripping markets as President Trump rolls out a fresh wave of tariff announcements, Bloomberg reports.
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Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performer this week was Unus Sed, down 0.68%.
  • Shenzhen has issued a risk alert warning investors about illegal fund-raising activities disguised as stablecoin investments. Some entities exploited terms like “financial innovation” and “digital assets” to mislead the public and induce speculative trading, according to Bloomberg.
  • Erika Kullberg and her talent management agency have agreed to pay $372,500 to resolve claims that they promoted FTX prior to the cryptocurrency exchange’s 2022 collapse, Bloomberg reports. Kullberg was among several celebrities, athletes, and influencers sued for allegedly enabling the now-defunct platform to commit fraud.

Opportunities

  • Robinhood Markets Inc. CEO Vlad Tenev said the company is in discussions with regulators about its tokenized equity offerings in Europe, following criticism from companies including OpenAI. The Bank of Lithuania has contacted Robinhood regarding its private stock tokens and is currently awaiting explanations before making an evaluation, according to Bloomberg.
  • Crypto-linked stocks rose Thursday after Bitcoin hit a record high of $113,499 amid broader market gains. Among the top gainers: Circle Internet Group +1.1%, Galaxy Digital +1.7%, Coinbase +2.3%, Hut 8 +4.9%, Riot Platforms +4%, Cipher Mining +2.9%, Terawulf +4.2%, and Bitdeer Technologies +3.1%.
  • Ant Group is partnering with Circle Internet Group to adopt its stablecoin on the Chinese fintech firm’s blockchain platform. The collaboration is part of Ant International’s broader efforts to introduce more regulated cryptocurrencies into its treasury management and cross-border payment systems, Bloomberg reports.

Threats

  • Nicholas Truglia’s sentence was increased to 12 years after U.S. District Judge Alvin Hellerstein found he willfully failed to honor his agreement to pay nearly $20.4 million in restitution. Truglia had pleaded guilty to participating in a scheme to steal more than $20 million in cryptocurrency from Michael Terpin, the founder and CEO of Transform Group, Bloomberg reports.
  • The UK’s Financial Conduct Authority fined Monzo Bank €21 million for failures in its systems to prevent financial crime. The violations occurred between 2018 and 2022, during which Monzo’s customer base grew to 5.8 million. Issues included inadequate customer due diligence and onboarding of high-risk clients, according to Bloomberg.
  • The European Securities and Markets Authority criticized Malta’s crypto oversight for falling short in several areas related to an unidentified entity it authorized. The review found deficiencies in the approval process, including the provider’s client onboarding procedures, risks associated with its use of Web3 services, and its ability to comply with anti-money laundering and sanctions requirements, Bloomberg reports.
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Frank E Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

Please consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

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Holdings as a percentage of net assets as of 6/30/07: Jiangxi Copper (China Region Opportunity Fund 1.74%); Silvercorp Metals Inc. (World Precious Minerals Fund 2.78%, Global Resources Fund 0.89%, China Region Opportunity Fund 2.42%); Gold Fields Ltd. (Gold Shares Fund 6.05%, World Precious Minerals Fund 2.58%, Global Resources Fund 0.39%); Sino Gold Mining Ltd. (Gold Shares Fund 1.03%, World Precious Minerals Fund 0.58%, China Region Opportunity Fund 0.27%); Anglogold Ashanti (0.0%); Dynasty Gold (0.0%).

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Tags:

BitcoinBTCcryptocryptocurrenciesMemeCoreATHall time highPresident TrumpUnus SedShenzhenFTXcryptocurrency exchangeRobinhood Markets Inc.The Bank of LithuaniaOpenAICrypto-linked stocksCircle Internet GroupGalaxy DigitalCoinbaseHut 8Riot platformsCipher MiningterawulfBitdeer technologiesAnt Group Nicholas TrugliaTransform GroupUK Financial Conduct AuthorityMonzo BankThe European Securities and Markets Authorityweb3Frank Holmes
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