Over the past three trading days, Bitcoin mining stocks have seen significant declines of up to 27%, despite Bitcoin’s recent rally that nearly reached $64,000.
One analyst suggests that the decline may be due to misplaced caution regarding the upcoming halving event. However, they hint that this could present a “great opportunity” to acquire mining stocks at discounted prices.
Since February 27, Marathon Digital Holdings and Riot Platforms, the two largest Bitcoin miners, have experienced drops of 18.5% and 21.9%, respectively. Other stocks, such as CleanSpark and TeraWulf, have also seen significant declines of 27.5% and 25.4%, respectively.
During this period, Bitcoin surged from around $51,000 to a yearly high of $63,700 before settling around $61,350. This disparity between Bitcoin’s performance and mining stocks’ decline has prompted speculation and analysis.
Analysts suggest that investors may be cautious about deploying capital into Bitcoin miners due to the upcoming bitcoin halving event, which will reduce miner rewards from 6.25 BTC to 3.125 BTC. However, historical trends indicate that such declines in mining stocks often present buying opportunities.
While some anticipate challenges for publicly listed miners in the U.S. following the halving, others believe that well-prepared miners with low energy costs and modern hardware will remain profitable. Despite concerns, experts like Mitchell Askew from Blockware Solutions remain optimistic about the long-term profitability of mining stocks.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up