Why Canaan Stock Blasted 5% Higher Today
Canaan (NASDAQ: CAN), one of the small universe of companies that sprang up to mine Bitcoin (CRYPTO: BTC), is a direct beneficiary of that cryptocurrency's rise over the past few days. On Monday, thanks to the general sustained bullishness on Bitcoin and other top coins, Canaan's stock closed just over 5% higher.
We should be careful not to tag the recent market action in Bitcoin and its ilk as a rally. Investors are getting a bit less bearish about the current state and looming future of the economy, a shift that benefits (often very) speculative investments like cryptocurrencies. But sentiment can turn on a dime, particularly with such assets, so a sudden and sharp reversal is always a possibility.
Either way, any shift in such assets immediately affects Bitcoin. That's because it is far and away the most important, closely followed, and influential of the bunch.
Source Fool.com
