Hi HODLers, Hiveans and Lions,
The Bitcoin ETF launched in January has heavily pumped the Bitcoin Price. One thing has been surprising though. Most Miners did not outperform $BTC over this period of time.
Usually, Bitcoin miners are seen as a leveraged play on Bitcoin.
Shares in several public mining firms are trading flat or down in 2024 so far.
- Riot Platforms (RIOT) -6.2%,
- Iris Energy (IREN) -11%.
- Bitfarms (BITF) +5% and
- Marathon Digital (MARA) +17%
During the same period of time Bitcoin is up 42% and the Blackrock ETF is up 35%!
That said, with the Bitcoin halving coming up in April, the per-BTC reward is set to permanently fall to 3.125 BTC per block. Several analysts from firms like JPMorgan and others agree that the halving could push smaller, less efficient miners out of business.
Nevertheless, the real reason is that these miners frontran #bitcoin performance as Isaac Holyoak, Chief Communications Officer of CleanSpark states:
“But prior to that, mining stocks really front ran the recent Bitcoin price increase—almost all miners were well ahead of Bitcoin.”
This is kind of stabilisation but I expect miners to pick up very soon,
My favorite is #Bitfarms $BITF as it is mostly using Hydro Power from Canada, Paraguay and Argentina.
I have taken some Long Term positions in this one, I might do a deep dive on inleo.io pretty soon.
Stay safe out there,
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It is logical that they are under pressure, as from April they will only earn half as much from mining.
Good point but I believe this was the case during previous halving.
The difference seems to be that traditional investors do not need to buy Bitcoin miners to be exposed to BTC anymore. They just buy #bitcoin #Etf! Less flows.
Would you agree this could be the reason?
That is a valid point indeed!
This is more or less an informative piece for investors and enthusiasts alike, offering nuanced perspectives on the intricacies of Bitcoin mining and its relationship with market trends. Considering various factors when evaluating investment opportunities in the cryptocurrency space is encouraged.