by Ian Cooper
With Bitcoin booming, keep an eye on mining stocks, we said just last month.
That’s because as Bitcoin pushes higher, the miners typically follow. In fact, with Bitcoin now back above $30,000, it came as no surprise that mining stocks, like Marathon Digital, Riot Platforms, or HIVE Blockchain are perking up.
All as investors eye the end of interest rate hikes from the Federal Reserve.
Now that bitcoin has touched $30,000, a move into the mid- to high-30s will be “likely” if it pushes through with conviction and would “force short speculators to cover and buy instead,” said James Lavish, managing partner at the Bitcoin Opportunity Fund, as quoted by CNBC. “Some investors are trying to get positioned ahead of that.”
Should the Fed pause with interest rates, Bitcoin could take off again – which would be great news for Bitcoin mining stocks and ETFs, such as:
Marathon Digital (MARA)
MARA is on the move with Bitcoin now above $30,000 and running. If BTC can push even higher, MARA will follow. That’s because its revenue depends on the direction of Bitcoin. Where Bitcoin travels, mining stocks like MARA are sure to follow. Now, if MARA can break above resistance around $10, it could potentially run back to $16 a share.
Better, the company just increased its Bitcoin production 21% in March – producing 825 BTC for the month. For all of Q1 2023, it produced 2,195 BTC. MARA also increased its hash rate by 64% in Q1 2023 to 11.5 EH/s as of March 31.
Riot Platforms (RIOT)
Riot Platforms is on the move, too. After running from about $5.50 to $10.58 in recent weeks, RIOT could see higher highs on the BTC recovery. According to the company, it produced 695 BTC – an increase of 36% year over year. With that, RIOT now owns 7,072 BTC.
Global X Blockchain & Bitcoin Strategy ETF (BITS)
With an expense ratio of 0.65%, the BITS ETF takes long positions in U.S. listed bitcoin futures contracts and invests, directly and/or indirectly, in companies positioned to benefit from the increased adoption of blockchain technology, as noted by Global X ETFs. While BITS doesn’t invest in Bitcoin directly, it does offer investors exposure to crypto companies working on next-generation technologies, creating the potential for outsized return, added Global X ETFs.
Better, BITS is likely to push higher as long at Bitcoin can stay above $30,000.