Bitcoin mining stocks recovered shortly before the halving, after weeks of decline. Tension in the Middle East slowed growth in tech stocks, showing a correlation between stocks and crypto assets. The halving today will halve miner rewards, leading to significant market movements in recent months.
Bitcoin’s price sits at $63,501 as it battles against liquidations seen this week. Miners are central to the halving narrative, facing reduced rewards alongside improvements in capacity and hashrate. Despite challenges, the BTC halving is seen as a positive event, expected to kickstart the next bull run.
Bitcoin Mining Stocks Surge Ahead of Halving
The stocks of publicly traded Bitcoin mining companies have surged alongside the crypto market, maintaining their correlation. Canadian-based miner Hut 8 (HUT) saw a 2.31% increase in the last 24 hours, recording additional gains this week in anticipation of the halving.
Marathon Digital (MARA) experienced a significant surge of 9.78% today, erasing weekly outflows as investor skepticism regarding mining firms’ direction diminished. Riot Blockchain (RIOT) posted even wider gains of 10.13% leading up to the halving.
Despite the recent rally, RIOT witnessed a 26.37% decrease in exits over the last month, prompting discussions about the sustainability of this upward trend in the long run. CleanSpark (CLSK) also saw a market boost of 5.9%, trading in line with other mining companies.
Bitcoin Mining Firms Prepare for Halving
In the weeks leading up to the halving, many projections suggested that Bitcoin mining companies would experience a decline in value. This anticipation stemmed from the impending 50% reduction in mining rewards and increased competition within the industry.
Recent developments, however, indicate that miners have significantly decreased their selling pressure. This shift suggests a combination of prior sales and improved readiness for the Bitcoin halving. Moreover, mining stocks are experiencing a surge because optimistic traders anticipate a rally in Bitcoin’s price, which would result in higher profits for mining firms.
This year, short sellers have taken positions against crypto stocks, anticipating a decline in the hype surrounding spot Bitcoin ETF approvals and the halving losing momentum.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
