Shares in companies involved in Bitcoin mining experience substantial growth
Shares in companies involved in Bitcoin mining have seen substantial growth, marking a rise of up to 24.4% on October 28, 2021. This robust growth coincides with Bitcoin’s value surpassing the $70,000 threshold. The upbeat path of Bitcoin and the ensuing surge in mining shares can be attributed to an encouraging macroeconomic environment and the ongoing integration of Artificial Intelligence (AI) by mining entities.
The Head Analyst at Blockware, Mitchell Askew, shed light on the situation saying, “Increased deficit spending and falling interest rates are fueling a rise in global liquidity”. Askew pointed out that concerns over inflation are causing a shift in investor preference from treasury bonds to Bitcoin markets. He emphasized the essential role played by the expansion into AI and high-capacity computing domains by Bitcoin mineworkers.
Bitcoin Mining Shares’ Uptick and Worldwide Acceptance
Bitdeer Technologies, a company based in Singapore, had the most notable surge, with shares jumping 24.4%. Companies Market Cap disclosed that Nasdaq-enlisted IREN, Gryphon Digital Mining, and Hut 8 also posted growth rates of 17.8%, 16.5%, and 15.5% respectively. Simultaneously, Marathon Digital and CleanSpark saw upticks of 11% and 10.2% correspondingly, while Riot’s shares heightened by 9.5%.
The climb in mining shares is in line with recent global patterns. Argentina, the United Arab Emirates, and Ethiopia have expressed their desire to utilize national resources for Bitcoin mining, as revealed by Matthew Sigel, VanEck’s Head of Digital Assets, in an interview with CNBC on October 28.
Sigel mentioned that BRICS countries are looking at Bitcoin as a means to settle international trades, providing an alternative to the U.S. dollar. More specifically, Russia’s national wealth fund is investing in Bitcoin mining facilities within BRICS countries.
Bitcoin’s halving in April significantly impacted the Bitcoin market, according to Askew. He added that miners who couldn’t maintain profitability following the event have since “given up”. This resulted in a “substantial source of selling pressure”, and its reduction positively influences pricing dynamics.
Mitchell Askew concluded optimistically, “We are decidedly back,” indicating Bitcoin’s current robust performance and optimism for continued growth.
Significantly, Bitcoin surpassed $70,000 for the first time since June 10, after US Bitcoin exchange-traded funds attracted over $3 billion in the past fortnight. A few cryptocurrency traders have observed a “golden cross” chart pattern, hinting at potential price elevation. This complements VanEck’s long-term prediction suggesting Bitcoin may hit the $2.9 million mark per coin by 2050, assuming a compound annual growth rate of 16.6% over the next quarter-century.
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