Bitcoin Mining Stocks Rebound on Halving Momentum
Bitcoin mining stocks have regained momentum a few hours into the halving following weeks in the red zone. Technology stocks witnessed slow growth in the market due to tension in the Middle East as stocks and crypto assets continued their correlation.
The Bitcoin halving will take place today and slash miner rewards by 50% from 6.25 BTC to 3.125 BTC per block. This event has ignited several movements and reversals in the market in the last two months. At press time Bitcoin price is at $63,501 as the asset fights off liquidations picked up this week.
Miners have been at the center of the halving narrative because their rewards will be slashed coupled with improvements to capacity and hashrate across mining sites. Despite this, BTC haling is widely perceived as a bullish activity and tipped to ignite the next bull run.
Bitcoin Mining Stocks Rally
The stocks of publicly traded Bitcoin mining stinks have soared with the crypto market to continue its correlation. Canadian-based miner Hut 8 (HUT) is up 2.31% in the last 24 hours. The crypto miner shares recorded more gains this week in the run-up to the halving.
Marathon Digital (MARA) has surged 9.78% today wiping out weekly outflows as investors were skeptical about the direction of mining firms. Riot platforms (RIOT) post wider gains of 10.13% going into the halving.
RIOT saw 26.37% exits in the last month opening up debates about the sustainability of this rally in the long run. CleanSpark (CLSK) notched a 5.9% boost in the market, trading similarly to other miners.
Why Are Bitcoin Mining Firms Surging?
Weeks leading up to the halving saw many projections of Bitcoin mining firms losing value. This is due to the 50% slash in mining rewards and competition faced by most companies.
However recent events show that miners have slowed selling pressure significantly pointing to previous sales and better preparation for the Bitcoin halving. Mining stocks are also high because bullish traders expect the price of the asset to rally which means more money for mining firms.
This year, short sellers have bet against crypto stocks expecting the “hype” of spot Bitcoin ETF approvals and the halving to lose stream.
Also Read: Why Does Solana Outperform The Market?
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