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Bitcoin mining stocks rally as cryptocurrency hits 17-month high

EditorAmbhini Aishwarya
Published 2023-11-03, 03:56 a/m
© Reuters.
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Bitcoin mining stocks, including Marathon Digital (NASDAQ:MARA), Riot Platforms (NASDAQ:RIOT), and CleanSpark (NASDAQ:CLSK), enjoyed a surge of 10%-12% on Friday, as Bitcoin traded near its 17-month peak. This positive trend coincided with the Dow Jones Industrial Average, S&P 500, and Nasdaq observing an uptrend, driven by the Federal Reserve's decision to keep rates unchanged for the second consecutive month and Chairman Jerome Powell’s dovish remarks.

Crypto stocks such as Coinbase (NASDAQ:COIN) also registered gains, rising by 8.7%. However, these gains moderated post-market close due to lower Q3 trading volumes. Despite this, Coinbase exceeded revenue and earnings expectations.

Cube Analytics recommended crypto traders to focus on bitcoin mining stocks for alpha generation in the next bull market. Simultaneously, Capriole Investments urged for caution against over-exuberance in the bitcoin derivatives market.

Bitcoin remained steady around $35,000, below its May 2022 peak. Ether [ETH], on the other hand, fell by nearly 2% in the past 24 hours. The broader crypto market dipped by 1.3%, according to the CoinDesk Market Index.

QCP Capital predicted that barring a major catalyst, Bitcoin would stabilize around the current level with $32,000 serving as a price floor. They also noted the possible impact of SEC Chair Gary Gensler's decisions on Bitcoin price and the potential approval of a bitcoin-settled exchange-traded fund by the SEC.

In contrast to Bitcoin and Ether, Cardano's token [ADA] and Decentraland's [MANA] advanced nearly 6%, while Chainlink [LINK], Aptos's token [APT], and Lido's governance token [LDO] fell between 5% and 7%. Solana [SOL] saw a dip following a significant rally.

Analysts suggest Bitcoin could reach $150,000 and quality mining stocks offer good exposure. Galaxy predicted that Bitcoin Spot ETFs could see substantial inflows in H1 2023, providing another potential boost to the cryptocurrency market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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