Global Liquidity Surge: Deficit spending and lower interest rates are increasing global liquidity, benefiting Bitcoin and related markets, per Blockwareâs head analyst, Mitchell Askew.
Bitcoin Miner Shares Rise: On October 28, shares of Bitcoin mining companies surged, with some seeing gains as high as 24.4% as Bitcoin crossed $70,000.
Macroeconomic Environment: Analysts point to a favorable economic climate and minersâ diversification into AI as drivers behind these gains.
Mitchell Askewâs Insights:
Deficit spending and low interest rates drive liquidity.
Investor concerns over long-term inflation are pushing interest toward Bitcoin, as seen in underperforming treasury bonds post-September rate cut.
Bitcoin mining stocks are trading with higher beta, offering more upside in this environment.
AI and High-Performance Computing: Some Bitcoin miners are diversifying into AI and high-performance computing, adding resilience to their business models.
Top Performers:
Bitdeer Technologies (BTDR): Led gains with a 24.4% increase.
Other Notable Gainers: IREN (17.8%), Gryphon Digital Mining (16.5%), Hut 8 (15.5%), Marathon Digital (11%), CleanSpark (10.2%), and Riot (9.5%).
Market Resilience: Miners who became unprofitable following the April 2024 Bitcoin halving have âcapitulated,â reducing sell pressure and boosting price action. Mining difficulty is set to increase for the third consecutive time.
Surviving Miners Thrive: Askew notes that miners with advanced equipment are enjoying strong health and profit margins, contributing to market stability.
Global Interest in Bitcoin Mining:
Argentina, UAE, and Ethiopia are using state resources to mine Bitcoin.
BRICS countries are considering Bitcoin for international trade, aiming to reduce reliance on the U.S. dollar.
Russiaâs sovereign wealth fund is investing in Bitcoin mining infrastructure across BRICS to support this shift.
This trend underscores an expanding commitment to Bitcoin as both an asset and a potential vehicle for global trade.
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