đ§Bitcoin Mining Stocks Will be Best BTC Proxy Bets If History Repeatsđâ
So far in 2024, the Bitcoin price has shown strength with most of the gains coming in the first quarter following the spot Bitcoin ETF launch. However, the Bitcoin mining stocks have given a laggard performance amid the BTC halving event putting significant pressure on the companyâs revenues.
Bitcoin Mining Stocks Show Undervaluation
This year, some of the top BTC mining stocks such as Marathon Digital (NASDAQ: MARA), Riot Platforms (NASDAQ: RIOT), etc have been down 30-50% since the beginning of the year.
Crypto analytics platform ecoinometrics said that Bitcoin miner stocks had a terrible start to the year 2024, followed by a missed opportunity in Q1 following the spot Bitcoin ETF launch. During the second quarter, the BTC price has largely remained range-bound leaving the mining stocks struggling to gain momentum.
However, if history repeats, Bitcoin mining stocks can outperform BTC during the next bull run. In comparison to the previous cycles, several BTC mining stocks remain undervalued as of now.
âIf you believe Bitcoin miners are likely to behave similarly during Bitcoinâs next parabolic phase, itâs reasonable to conclude that most of them are clearly undervalued,â noted ecoinometrics.
Top Bitcoin mining players have been consolidating their operations following the halving event in April, by buying new equipment and gearing up for future operations. Last week Marathon Digital purchased 4,144 Bitcoins through its $300 million in convertible notes.
In the past, several players have been betting on MicroStrategy stock as a proxy for Bitcoin. This also led to the launch of a leverage MicroStrategy ETF MSTX last week which saw strong trading volumes.
BTC Consolidation Ending Soon?
Popular analyst Rekt Capital stated that Bitcoin is just 125 days from the halving event. Historically, the Bitcoin parabolic rally begins after 160 days from BTC halving. Thus, the BTC price breakout might come a month later by September end.
