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Stocks tied to %Cryptocurrencies are rallying as the price of Bitcoin has reached $42,000 U.S., its highest level since May 2022.

Bitcoin rocketed 6% higher in the past 24 hours to hit a high of $42,162 U.S. It has since pulled back to trade at $41,598 U.S. but is up substantially from the $38,000 U.S. it was at on Dec. 1.

The big move higher in Bitcoin’s price has stocks tied to cryptocurrencies surging, with the stock of crypto exchange %Coinbase (COIN) up 7% in premarket trading, while Bitcoin investor MicroStrategy’s (MSTR) stock is up 8%.

Shares in Bitcoin miners are also rising rapidly, with %RiotPlatforms (RIOT), %MarathonDigital (MARA) and %CleanSpark (CLSK) each up between 10% and 12% before the opening bell.

The ProShares Bitcoin Strategy exchange-traded fund (ETF), which tracks Bitcoin futures, is up 7% and at a new 52-week high.

Bitcoin is riding a wave of positive sentiment as markets price in a series of interest rate cuts throughout 2024 and investors bet that regulators will soon approve Bitcoin exchange-traded funds (ETFs), which could attract an influx of capital.

Bitcoin’s price has now risen 145% in the last 12 months, outpacing just about every other asset class, including stocks.

There is a move back into riskier investments such as crypto on expectations that central banks will begin cutting interest rates in 2024.

However, despite the current rally, Bitcoin remains below its all-time high reached in November 2021 of $69,000 U.S., which is when the cryptocurrency market last peaked.