As the stock market correction lingers, mutual funds are piling into bitcoin stocks Coinbase and MicroStrategy, along with music streaming giant Spotify.
Cryptocurrency prices were mixed midday Wednesday after soaring Tuesday. Bitcoin continues to rally on hopes a spot bitcoin exchange-traded fund will launch soon. Bitcoin prices rallied above $35,000 intraday Tuesday — its highest level since May 2022.
The price of bitcoin traded around $34,400 Wednesday, per CoinDesk.
Bitcoin Stocks: Coinbase, MicroStrategy
Meanwhile, cryptocurrency exchange Coinbase dropped more than 5% midday Wednesday, giving back a big part of Tuesday's 6.3% advance.
Shares are back above their 50-day line, which had been a stout resistance level. Still, COIN stock is nearly 30% off its 52-week high, set on July 14.
The stock is building the right side of an undefined base at the moment. Wait for further strength to provide more clarity to the ongoing base formation.
MicroStrategy added 1.4% midday Wednesday, extending this week's gains after the stock soared more than 12% Tuesday. MSTR stock is building a cup base with a 475.09 buy point. With the stock about 8% away from that entry, keep an eye out for a potential handle to offer a lower buy point.
The computer software company holds 158,245 bitcoins with an average purchase price of $29,582 as of Sept. 24, CoinDesk reported.
MSTR stock shows a good 94 out of 99 IBD Composite Rating, according to IBD Stock Checkup. Meanwhile, MicroStrategy's relative strength line hit a new high this week, indicating big stock market outperformance.
Learn How To Time The Market With IBD's ETF Market Strategy
Spotify Attempts Breakout
Late Tuesday, music streaming giant Spotify beat expectations for new subscribers and total listeners in the third quarter and posted a surprise profit.
The Stockholm-based company added 6 million premium subscribers in the September quarter. Analysts had expected 4.2 million new subscribers. Spotify ended the period with 226 million total paying subscribers worldwide.
Also, Spotify tallied 574 million monthly active users in the third quarter vs. Wall Street's target of 572 million. Spotify offers an ad-supported service in addition to its commercial-free subscription service. Its monthly active users rose 26% year over year.
In response, SPOT stock surged more than 10%, closing at its highest level since July 21. Shares broke out past a 167.74 buy point in a flat base, according to IBD MarketSmith chart analysis. Spotify shares dived 5.5% in afternoon trade Wednesday.
Remember the stock market outlook is in a market correction. That means investors should be avoiding new breakouts until the outlook improves.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on bitcoin, growth stocks and the Dow Jones Industrial Average.
