JP Morgan and other publicly traded crypto companies are outshining the market for cryptocurrency miners and other common crypto firms.

In terms of market cover development, publicly traded crypto companies dominated in January, outpacing the crypto industry itself.

The group’s overall market cap increased 14 % in January, pushing the Wall Street firms ‘ total valuation to$ 108 billion. Among the publicly traded crypto firms tracked by JP Morgan, which includes Coinbase and Bitcoin miners like Marathon and Riot.

According to JP Morgan analysts, the crypto market itself ended January with a market cap of around$ 3.2 trillion, recording an 8 % growth as President Donald Trump assumed office as the country’s first crypto president. He had positioned himself as America’s first crypto president, according to a report released on Tuesday.

However, as the regulatory culture under Trump began to take shape, the market cap of publicly traded crypto firms increased by nearly twice that of the overall crypto industry, according to experts.

Previous SEC Chair Gary Gensler resigned, a questionable crypto finance rule for banks was soon rescinded, and acting SEC Chair Mark Uyeda unveiled a new crypto job force—placing SEC Commissioner Hester Peirce, an industry advocate, at the broad initiative’s helm.

Bitcoin’s price rose 9 % to$ 102, 300 by January’s end, but Coinbase’s market cap expanded 17 %, even though the exchange’s trading volumes declined 17 % from the previous month.

Bitcoin, which the SEC sued over alleged breaches of membership requirements in 2023, may benefit from the SEC’s willingness to work with crypto companies. However, according to JP Morgan scientist Charles Pearce, the effectiveness of publicly traded crypto companies may have been mostly boosted by rumors about artificial intelligence.

Riot’s market cap expanded 20 % in January, outpacing other firms, as the miner started evaluating how additional power capacity at its Texas facility could be leveraged in AI and high-performance computing ( HPC ) settings.

According to Pearce,” Part of the story for Bitcoin workers has become their ability to transition to HPC information locations.” Some companies have jumped off that thesis, which will be independent of how the crypto industry overall behaves.

Following Bitcoin’s so-called lowering last year, a inaugural event that cut the rewards workers receive from validating transactions, miners like Bitdeer began exploring AI. To be specific, Bitcoin’s stop praise fell to 3.125 Cryptocurrency from 6.25 Bitcoin—though the increased scarcity has helped considerably raise the price of each coin in the months since.

According to Bernstein, the property manager predicted that mining companies may turn over up to a third of their potential enterprise value from AI verticals, with the expectation that miners does shift toward AI by 2027.

Executive Chairman of Riot, Benjamin Yi, disclosed in a press release that the shift could supply Riot with green revenue for years to come as Riot revealed its possible AI push.

He said,” While we continue to believe in the major benefit of our Crypto mine businesses, we have recognized for some time the value of having long-term, repetitive cash flows from a well-capitalized AI/HPC counterparty”.