Caution Ahead for Bitcoin Mining Stocks
Furthermore, a similar trend took place three years ago.
When Bitcoin prices surged in 2017, cryptocurrency stocks also surged. At the peak of the bubble, the 60-day rolling average gains on blockchain-based stocks was 165%, with a median growth of 126%.
However, the fleeting nature of rising prices in the last few months is also a reason to be cautious. Bitcoin’s 2017 rally proved to be a short-lived bubble, and this year’s Bitcoin rally could lead to a downfall with a similar effect on crypto stocks.
Tesla Inc. Provides a Benchmark
Bitcoin mining company stocks are also comparable to some electric vehicle (EV) stocks.
Upslope Capital Management, an alternative asset management firm, reported a similar uptrend in its EV stocks, with 60-day rolling averages and median gains of 143% and 162%.
Bitcoin mining stocks have 60-day average gains of 114.2% with a median of 125.2%. Those stocks are, therefore, slowly entering the “danger region” as well.
More specifically, hardware manufacturing companies and institutional mining support firms like Argo Blockchain PLC posted average 60-day trailing gains of 74.6%.
Searches Show Investor Interest
Additionally, Google search data for “Bitcoin” reveals that investor interest in Bitcoin is far below the peak interest levels experienced in 2017.
On the other hand, the search volume for “Tesla Inc.” witnessed noticeable spikes throughout the year. “Bitcoin” search trends are now approaching their 2019 peak and could narrowly surpass the interest for “Tesla Inc.”
Investor interest in Bitcoin is slowly catching on and is expected to explode when BTC crosses all-time highs. Only time will tell what this will mean for relevant mining outfits.
By: Nivesh Rustgi
Title: Top Bitcoin Mining Stocks Post Higher YTD Gains Than Crypto Itself
Sourced From: cryptobriefing.com/top-bitcoin-mining-stocks-post-higher-ytd-gains-than-crypto-itself/
Published Date: Wed, 25 Nov 2020 10:55:41 +0000