Bitcoin Mining Stocks Surge as BTC Price Moves Past $23,500

UTC by Bhushan Akolkar · 2 min read
Bitcoin Mining Stocks Surge as BTC Price Moves Past $23,500
Photo: Depositphotos

Bitcoin mining stocks shined bright soon after the BTC price crossed $20,000 levels on Wednesday. Bitcoin has surged over 20% in the last 24 hours and has moved past $23,500 levels hitting a new all-time high.

It’s a wild ride currently for Bitcoin (BTC) investors as the world’s largest cryptocurrency is on an unstoppable bull run. At press time, BTC price is 20% up and has moved past $23,500 levels. Currently, Bitcoin is trading at $23,402 with a market cap of $433 billion. Interestingly, just as Bitcoin rallied over the last 24 hours, stocks of the Bitcoin mining companies have are up with double-digital percentage gains. Stocks of Bitcoin mining giants like Marathon Patent Group (MARA), Riot Blockchain (RIOT), and Hive Blockchain (HIVE) are up for a roll. Moreover, all these giants are worth nearly half-a-billion dollars.

As of writing this article, the HIVE Stock is 30.3% up trading at $2.34. Similarly, Toronto-based Bitcoin mining company Hut 8 surged 10% on Wednesday. Speaking to CoinDesk, Ethan Vera, co-founder of mining company Luxor Technologies said:

“Mining stocks are a very attractive way for investors to get upside exposure to [the] bitcoin price while being limited on the downside due to the infrastructure nature of the business. The best mining companies can deliver profits in bear markets and have outsized returns in bull runs.”

Bitcoin’s Wild Run to $23,500

After breaking the key resistance of $20,000 on Wednesday, BTC has entered a wild bull run today. Analysts have been predicting this for a long time now and it is now turning into reality. As per the Bloomberg report, analysts have been expecting a further rally ahead.

Scott Minerd, the chief investment officer at Guggenheim, spoke to Bloomberg TV on Wednesday. Guggenheim Partners has already applied with the SEC for a $500 million worth of exposure to Bitcoin through its $5 billion Macro Opportunities Fund. Instead of directly buying these BTC, the institutional giant plans to invest through the Grayscale Bitcoin Trust (GBTC).

Speaking to Bloomberg TV, Mr. Minerad said that the inflationary pressure and massive money printing by the Federal Reserve should eventually take Bitcoin price all the way to a whopping $400,000. Note that at this price point, the total market of Bitcoin will be 90% that of Gold.

Analysts have been already predicting that Bitcoin will surge past Gold’s market cap in a few years. The flood of institutional money has pushed BTC to new highs. Let’s see at what levels Bitcoin closes this year of 2020 and what it has in store for investors in 2021.

Bitcoin News, Blockchain News, Cryptocurrency news, Market News, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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