Home Crypto News Bitcoin Mining Stocks Crash Despite BTC Rally

Bitcoin Mining Stocks Crash Despite BTC Rally

04 Mar, 2024 Crypto News

Bitcoin Mining Stocks Crash Despite BTC Rally

Stocks related to Bitcoin mining have plunged by as much as 27% in the past three trading days, despite Bitcoin's recent surge, almost touching $64,000.

An analyst suggests this drop may be due to unwarranted concerns about the upcoming halving, hinting at it being an advantageous moment to acquire mining stocks at lower prices.

According to Google Finance, Marathon Digital Holdings and Riot Platforms, the two largest Bitcoin miners, have experienced declines of over 20%, while CleanSpark and TeraWulf have been hit the hardest.

Conversely, Bitcoin's price surged from approximately $51,000 to a yearly peak of $63,700 before stabilizing at the current price of $61,350.

Notably, individuals such as Peter Schiff, known for advocating gold and expressing skepticism toward cryptocurrencies, have observed this trend, speculating whether the decline in Bitcoin mining stocks foreshadows challenges for Bitcoin.

A trader named Chris mentioned on a platform that he initially invested in CleanSpark but changed his stance on miners as Bitcoin approached $65,000, describing the situation as becoming overheated and subsequently withdrawing his investment.

Mitchell Askew, head analyst at Blockware Solutions, suggested that investors might be cautious about allocating capital to Bitcoin miners due to the looming halving event, which will reduce miner rewards by half.

Askew highlighted two instances in the past year where both Bitcoin and Bitcoin mining stocks experienced significant declines, emphasizing that these periods presented favorable opportunities to acquire mining stocks at discounted prices.

He described such pullbacks as natural occurrences given the volatility of these assets.

Looking ahead, Jaran Mellerud, a founder and chief mining strategist at Hashlabs Mining, believes that the three to four months following the Bitcoin halving, scheduled for April 20, could be pivotal for publicly listed miners in the U.S.

He anticipates that some high-cost miners may relocate offshore to sustain profitability.

Sources:

https://cointelegraph.com/news/bitcoin-mining-stocks-dip-27-percent-despite-bitcoin-rally

https://www.google.com/finance/

https://x.com/StonkChris/status/1763226766787719307

https://www.nicehash.com/countdown/btc-halving-2024-05-10-12-00

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