Bitcoin (BTC) mining stocks surged on Thursday as the coin’s price hovered near $35,000, its highest level in over 17 months.
The Extensive Performance of Bitcoin Mining Stocks
According to reports, US-listed mining businesses like Marathon Digital Holdings Inc (NASDAQ: MARA), Riot Blockchain Inc (NASDAQ: RIOT), and CleanSpark Inc (NASDAQ: CLSK) saw 10% to 12% advances throughout the trading day. These companies’ double-digit gains show the growing interest in Bitcoin mining equities.
Cube Analytics CEO Caleb Franzen advised crypto traders to focus on these stocks for large gains, particularly if they feel a crypto and equity bull market is on the horizon.
If you’re a crypto trader who believes that a crypto + equity bull market is around the corner, I’d implore you to focus on #Bitcoin mining stocks to generate the most alpha.
YTD returns for miners vs. altcoins
— Caleb Franzen (@CalebFranzen) November 2, 2023
The mining companies’ advance was part of a larger surge in equities, with the Dow Jones Industrial Average (INDEXDJX:.DJI) scoring its highest day since June. The excitement was not restricted to Bitcoin miners; crypto-related stocks in general saw an increase in sentiment on Wall Street.
Traders are increasingly betting that the Federal Reserve has completed its historic interest rate hike cycle, decreasing market uncertainty. As investors restore confidence, their focus is shifting to the digital asset area.
The S&P 500 (INDEXSP:.INX) and Nasdaq Composite (INDEXNASDAQ:.IXIC) equity indexes rose for the second day in a row. This momentum was aided in part by Federal Reserve Chair Jerome Powell’s modestly dovish words and the Fed’s decision to keep interest rates steady for the second month in a row. These moves were made in response to evidence of reducing inflation and lower labor expenses.
Furthermore, Coinbase Global Inc (NASDAQ: COIN), a renowned crypto exchange, saw its stock price rise 8.7% throughout the trading day. However, some of these gains were wiped out after the market closed because the company reported reduced trading volumes for the third quarter. Nonetheless, Coinbase exceeded analyst projections in terms of revenue and earnings.
The State of the Crypto Market in General
Bitcoin itself traded about $35,000, a considerable gain from its low earlier in the year, and is at its highest price level since May 2022. Ethereum (ETH), the second-largest cryptocurrency by market value, remained at $1,800 after a small 2% drop in the previous 24 hours.
The CoinDesk Market Index (CMI) for the broader crypto market fell 1.3% within the same time period, indicating that the market remains volatile. In terms of specific cryptocurrencies, Cardano’s native token (ADA) and the metaverse platform Decentraland’s (MANA) both advanced over 6%.
On the other hand, Chainlink (LINK), the token (APT) of venture capital-backed blockchain Aptos, and the governance token (LDO) of liquid staking platform Lido all fell by 5% to 7%. Solana (SOL) has also cooled off after a remarkable surge that saw its price more than double in just over two weeks. The token fell to $40 after reaching a 14-month high of $46.60.