Bitcoin Mining Stocks Surge By 24% Amid Favorable Macroeconomic Climate and AI Diversification

Bitcoin mining stocks surged over 24% as Bitcoin price rallied across the $70,000 threshold.Mitchell Askew, an analyst at Bitcoin mining company Blockware, says a favorable macroeconomic climate fuels this growth.

Moreover, miners have diversified into artificial intelligence (AI), sparking more interest in their stocks.

Equities Of Bitcoin Mining Companies Surge By Over 24%

The stocks of Bitcoin mining firms recorded a significant rise up to 24.4%, according to data from Companies Market Cap. This remarkable overturn came as Bitcoin price surged above the $70,000 region the same day.

The data revealed that the shares of Bitdeer Technologies, a Singapore-based mining firm, took the lead with a 24.4% rally. Also, Nasdaq-listed IREN, Gryphon Digital Mining, and Hut 8 shares surged by 17.8%, 16.5%, and 15.5%, respectively.

Marathon Digital increased by 11%, while CleanSpark and Riot rose by 10.2% and 9.5%, respectively.

Investors have developed a strong interest in the equities of Bitcoin mining companies. Moreover, the growth came as the other factors continued to push a bullish trend in the crypto market and other related sectors.

Mitchell Askew, a prominent analyst at Bitcoin mining firm Blockware, shared insights into the recent spike in miners' stocks. Askew says the overall macroeconomic outlook favors the Bitcoin market, which will positively affect mining stocks.

Further, the analyst pointed out that lower interest rates are a major driving force on global liquidity. Moreover, investors remain cautious of high inflation, which impacts their interest in long-term commitments such as treasury bonds.

Askew stated: Deficit spending and lower interest rates are driving global liquidity higher [while] investors are fearful of high inflation over the long term, as evidenced by poor performance from treasury bonds since the Sept rate cut."

The analyst explained that investors are more focused on the Bitcoin markets and, by extension, Bitcoin mining stocks that trade as a beta alternative.

Again, Askew reviewed how most Bitcoin mining companies have diversified into artificial intelligence (AI). The analyst mentioned that these miners have benefited from high-performance computing sectors, making their stocks more appealing.

Notably, the recent growth in Bitcoin mining stocks indicates investors' interest and confidence in the industry's potential. Moreover, it positions the firms as a vital part of the broader crypto ecosystem and the technological space.

Meanwhile, the spike in the equities of Bitcoin miners could translate directly to Bitcoin's price. This is because the more profitable the mining entities become, the lesser the possibility they have to sell their BTC holdings for operational expenses.

This situation will lower selling pressure on Bitcoin and trigger a price surge in the long run.

Bitcoin Rallies Across The $70,000 Threshold, Sparking More Bullish Predictions

Bitcoin has indicated a strong price movement as it surpassed the $70,000 region for the first time since mid-June. Moreover, the broader crypto market is bullish, with most assets in green. The cumulative market cap surged by 3.63% to hit $2.4 trillion.

Meanwhile, Bitcoin's 50-day moving average has exceeded its 200-day moving average, what analysts call a Golden Cross."

"Golden Cross" in #Bitcoin
50 sma crosses up thru the 200 sma pic.twitter.com/C5wGz3dPOH

- Brian Shannon, CMT (@alphatrends) October 28, 2024

Speaking to CNBC, VanEck's head of digital assets research, Matthew Sigel, made a bold Bitcoin price prediction. Sigel believes Bitcoin could reach $2.9 million per token by 2050.

Sigel said, Our bet is that this is a very bullish setup for Bitcoin going into the election."

The post Bitcoin Mining Stocks Surge By 24% Amid Favorable Macroeconomic Climate and AI Diversification appeared first on Techreport.