⛏️Crypto Mining Stocks Stand Out Again and Perform Better than Bitcoin, But What’s the Impact?

The dynamic between Bitcoin and crypto mining stocks is truly fascinating, and we will explore this through four special graphs.

1. Market Cap of Miners Rises Again Alongside Bitcoin. The peak in stock prices occurred on July 15, 2024, and an interesting fact is that high valuations in stocks can signal risk for Bitcoin.

2. Companies like Core Scientific, CleanSpark, Riot Blockchain, Bit Digital, and Northern Data have been prominent in contributing to the growth of this sector, which currently has a market cap of $25 billion.

3. A more interesting way to evaluate this is through the Miners' Index, which is weighted according to the market cap size of the companies. Historically, lows and highs in this index coincide with the lows and highs of Bitcoin, indicating that crypto mining stocks have the highest correlation with all other assets. However, in 2024, the highs have not coincided as they did before, showing that the dynamic is changing.

4. When we compare the market cap of Bitcoin with that of miners, we conclude that these companies have been gaining ground relative to Bitcoin since 2020, meaning they are performing better. Additionally, when interest in Bitcoin is significantly higher compared to crypto mining stocks (Green Signal), the price of Bitcoin tends to change its trend with good accuracy.

Understanding the mining landscape is crucial, as miners hold millions of BTC, and the relationship between their performance and stock prices appears to be a strategic game, where there are times when it's better to be exposed to BTC and other times when stocks are the preferable choice.

We have numerous intriguing metrics for miners, and soon you will be able to access them at Alphractal