Key Points
- Bitcoin mining-related stocks are showing a bearish trend due to concerns over post-halving profitability.
- The Bitcoin halving 2024 event is imminent, with only 2,375 BTC left to be mined until the next block half.
The 2024 halving event for Bitcoin is nearing, with a mere 2,375 BTC left to mine before the next block half. The price of Bitcoin has been fluctuating within the $61,400 and $72,000 range, standing at approximately $63,492 on Wednesday.
This price drop has also affected crypto-related mining stocks due to profitability worries after the halving.
Decline in Bitcoin Mining Stocks
Despite Bitcoin’s impressive performance in Q1, Marathon Digital Holdings Inc’s (NASDAQ: MARA) stock has plummeted over 34% in the past month, trading around $14.74 on Wednesday. Similarly, Riot Platforms Inc’s (NASDAQ: RIOT) stock has dropped by over 47% YTD, trading at about $8.14.
CleanSpark Inc’s (NASDAQ: CLSK) shares have also fallen by 28% in the past month, trading at nearly $14.75. Bitdeer Technologies Group Technologies Group’s (NASDAQ: BTDR) stock has decreased by approximately 35% in the last month, trading around $5.55.
Iris Energy Ltd’s (NASDAQ: IREN), an Australia-based Bitcoin mining firm, stock has dropped over 39% YTD, trading around $4.44. Canadian-based Bitfarms Ltd’s (NASDAQ: BITF) stock has also fallen by more than 41% YTD, trading at about $1.75.
Cipher Mining Inc’s (NASDAQ: CIFR) stock has declined around 26% in the last month, trading around $3.45. Bit Digital Inc’s (NASDAQ: BTBT) shares have dropped by over 56% YTD, trading at approximately $1.87.
Anticipated Post-Halving Rebound
Mitchell Askew, a leading analyst at Blockware Solutions, believes the upcoming Bitcoin halving event will be a buy-the-news event. He was addressing the market’s anticipation of a further dip due to the ongoing Middle East crisis and the Russia-Ukraine conflict.
Askew expects a general rebound of crypto-mining stocks in line with Bitcoin prices in the coming weeks. Jaran Mellerud, founder and chief mining strategist of Hashlabs Mining, suggested that some US-based Bitcoin miners could expand overseas for cheaper electricity costs after the halving event.
Bitcoin and the entire crypto prices have been reacting to the macroeconomic outlook, especially the United States inflation issue. According to crypto analyst Michael van de Poppe, Bitcoin price has already established a local top and is likely to consolidate in the range before continuing with the prior bullish trend.
