by Ian Cooper
With Bitcoin regaining momentum, it’s time to buy oversold Bitcoin stocks again.
Even as the broader market drops, Bitcoin tacked on another $2,275 on Friday, bringing the digital currency to $89,543. Analysts now argue it could see $100,000 by Thanksgiving. Others are now arguing Bitcoin could rally to $200,000.
“After its recent surge, premised on the more ‘bitcoin friendly’ candidate winning the U.S. presidency, we can expect some near-term retracement – as was the case in April this year,” said BCA Research, as quoted by CNBC. “On a multiyear horizon though, bitcoin’s structural uptrend is intact and will ultimately take it to $200,000+.”
That’s due to the belief that, like gold, bitcoin is a “non-confiscatable asset” – an asset that can’t be taken from holders in the event of hyperinflation, banking system failure, or state expropriation, and therefore acts as insurance against such events, added CNBC.
If we eventually see $200,000 Bitcoin, stocks including these two could easily rocket higher.
MicroStrategy (MSTR)
With more than 1% pf all Bitcoin on hand, MicroStrategy (MSTR) rallies when BTC rallies.
Helping, Barclays just initiated an overweight rating on MSTR.
The firm added that, “In essence, MSTR feels like a BTC index fund that is also capable of generating its own investment capital, such that investors not only gain exposure to the underlying BTC asset price, but also benefit from future self-funded accumulation,” as quoted by Seeking Alpha.
Marathon Digital (MARA)
Bitcoin mining stock Marathon Digital (MARA) is also an interesting opportunity.
Currently trading at $20.42, the Bitcoin mining stock could see $30 if Bitcoin explodes even higher. And while recent MARA earnings weren’t so hot, that should improve moving forward with digital currencies making big moves higher.
In its most recent quarter, the company’s EPS loss of 42 cents missed by seven cents. Revenue of $131.65 million, while up 34.5% year over year, missed by $12.7 million. The company also noted that at the end of the third quarter, it held 26,747 BTC.
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