All in for $MARA, $RIOT, $COIN ? Read & discuss.
Stocks were split on Tue, 09 Jan 2024 as an early week, tech-fueled rally was cut short, after Samsung issued a profit warning, saying that it expects a -35% fall in its Q4 operating income, as demand continues to lag.
As a result, all 3 Composite indexes were spooked: (see above)
The Dow slipped -0.4%, (-157.85 to 37,525.16).
The benchmark S&P 500 fell by -0.15% (-7.04 to 4,756.50)
The tech-heavy Nasdaq barely made it above the flatline, reversing earlier losses closing at +0.09% (13.94 to 14,857.71).
Seems like Wall Street’s attention once again turned towards the Inflation report due out on Thu, 11 Jan 2024 and what it could imply with regards to interest cut.
Two Fed officials (Michelle Bowman and Raphael Bostic) have commented separately on current US cooling inflation and how existing monetary policy is working its magic.
However, they stop short on talking about interest cut. (see below).
All the above served to further consolidate US market.
The most interesting story of the day that I came across was: (see below)
On Tue, 09 Jan 2024, the Securities and Exchange Commission (SEC) said someone briefly accessed its X social media account and posted a fake message saying it had approved Bitcoin spot ETF.
This was a highly anticipated outcome, eagerly awaited by the crypto industry.
Actually, the SEC reiterated that it has not yet approved spot bitcoin ETFs.
Its Twitter account had been compromised briefly by an unknown party after about 4 pm Eastern time to pose the fake news.
The "unauthorized access has since been terminated," SEC said.
The reason why I find this news “fascinating” is because on Tue, 09 Jan 2024 I have a PICK post on $COIN & $RIOT will rally after Bitcoin ETF approved? (click to read and help to repost ok- tks).
The fake Twitter saga has taken the guessing game out of the Bitcoin ETF approval.
Price of Bitcoin rose after the fake-Tweet was picked up by Reuters and other news media that monitor the SEC's account.
Price of Bitcoin shot up to around $48,000 on the fake post, before falling to below $45,000 minutes later.
It was last down -3.15% at $45,513 after the SEC deleted and disavowed the information.
My viewpoints: (mine & mine only)
Below are why I think (with SEC approval of the Bitcoin Spot ETF), why Bitcoin price will increase and will lead to corresponding rises in mining stocks.
Direct Relationship with Revenue:
Increased Bitcoin Price: When Bitcoin price goes up, mining companies like $Marathon Digital Holdings Inc(MARA)$ , $Riot Blockchain, Inc.(RIOT)$ , $Hut 8 Mining Corp(HUT)$ earn more Bitcoin when they successfully mine new blocks.
This translates directly into higher revenue for the mining companies.
Increased Profitability: As revenue increases, so does the profitability of mining companies, attracting more investors to the sector, pushing their stock prices higher.
Investor Sentiment and Perception:
Optimism and Hype: Rising Bitcoin prices often coincide with increased optimism and hype surrounding the cryptocurrency. The positive sentiment can spill over to mining stocks, leading investors to perceive them as attractive investments.
Hedging with Leverage: Some investors view mining stocks as a way to hedge their exposure to Bitcoin with potential for magnified returns. When Bitcoin rises, these investors may buy into mining stocks, driving up their prices.
Market Dynamics and Correlations:
Small Market Cap Volatility: Mining stocks generally have smaller market capitalizations compared to established companies. This can lead to larger price swings, both on the upside and downside, in response to market movements.
Sector Rotation: During periods of positive sentiment towards Bitcoin, investors may rotate their funds from traditional assets to crypto-related investments, including mining stocks. This can further contribute to their price appreciation.
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Do you think Bitcoin Spot ETF will be approved by SEC anytime soon?
Do you think Bitcoin mining companies stock prices will rise upon Bitcoin ETF approval?
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