Bitcoin

Why Bitcoin and Cryptocurrency Stocks Soared or Fell in the First Half of 2024

Published

7 months ago

14 July, 2024

Why Bitcoin and Cryptocurrency Stocks Soared or Fell in the First Half of 2024

Find out which crypto stocks are thriving in the 2024 post-halving market and why. The answers could set you up for market-beating returns in the long run.

O Bitcoin (BTC 3.05%) the cryptocurrency recorded a solid gain in the first half of 2024, starting with the introduction of spot bitcoin exchange traded funds (ETFs) in January. Bitcoin mining rewards were halved on April 19, hardly moving the cryptocurrency’s price immediately but setting the stage for another four-year boom-bust cycle. By the end of June, it had sailed to a solid 44.2% gain according to data from S&P Global Market Intelligence.

So there is Microstrategy (MSTR 2.81%). The enterprise software company decided to ride the Bitcoin wave in the most amplified way four years ago. MicroStrategy’s balance sheet contained $7.5 billion in Bitcoin but only $81 million in cash as of the end of March. Mirroring Bitcoin’s rise with an extra shot of adrenaline, MicroStrategy has surged an incredible 118.1% in six months.

Meanwhile, most cryptocurrency miners did not share the same optimistic fate. The reward is half had an immediate effect on their financial results, and the major mining companies went in different directions. Digital Marathon Participations (MARA 9.20%) had a price drop of 15.5%, while Riot platforms (REBELLION 5.32%) lost 40.9% of its market value. Highlighting the complex nature of today’s cryptocurrency market, Clean spark (CLSK 5.95%) managed to keep up with Bitcoin’s gains, pocketing a 44.6% return.

Bitcoin Price data by Y-Graphs

Same fundamental news, different market reactions

Why have these crypto-related investments gone in different directions? Their operations are quite different, and market makers are paying attention to these unique qualities.

Clean spark

CleanSpark acquired a total of 13 new mining facilities from other companies in the first half of the year, spanning the U.S. map from Georgia to Wyoming.

Additionally, the all-American Bitcoin mining company also crushed Wall Street consensus estimates in its February Q1 report and May Q2 update. The company posted a profit in both of these earnings reports, both in terms of free cash flows and adjusted earnings per share.

With proven profitability, a debt-free balance sheet, $323 million in cash reserves, and a similar amount of Bitcoin holdings, CleanSpark appears poised to outperform the lower yields of this rewards halving cycle.

It’s no surprise to see this success story inspire rising stock prices.

Marathon

Marathon has experienced the same halving rewards as CleanSpark and has gone on its own production facility buying spree. The company currently has 31.5 exahashes per second (EH/s) of mining equipment installed, targeting the Bitcoin mining business. A much smaller fleet of machines with a capacity of 0.6 EH/s is mining the smaller Kaspa cryptocurrency instead, diversifying Marathon’s crypto operations a bit.

The cryptocurrency miner is also exploring international production beyond its Texas facility, running a small test project in Finland and a power grid partnership in Kenya. Marathon consumes more cash than it generates, and its Bitcoin holdings outweigh its cash balance by a ratio of 4 to 1.

Investors see this as a riskier structure, making Marathon shares more vulnerable to economic challenges.

Riot platforms

Riot Platforms operates a smaller Bitcoin mining operation than either Marathon or CleanSpark. Its average production capacity stops at 11.4 EH/s, targeting 31 EH/s by the end of 2024. Both Marathon and CleanSpark are targeting 50 EH/s capacity by the same calendar milestone.

The company supplements its Bitcoin revenue with energy credits earned by slowing down or shutting down its mining operations when the Texas power grid needs a boost. The company is involved in an attempted stock-for-stock buyout of a smaller rival Bit Farms (BITF 3.26%), building a 14% equity stake while Bitfarms adopted a poison pill policy.

The acquisition is up in the air and investors generally hate uncertainty, so Riot Platforms’ stock performance isn’t impressing anyone in 2024.

Microstrategy

MicroStrategy is a different story. The company doesn’t operate any Bitcoin miners, so it doesn’t care much about the lower mining rewards.

Founder and CEO Michael Saylor’s company cares deeply about the price of Bitcoin, now and in the long term, as nearly all of its cash reserves have been converted into Bitcoin holdings. Furthermore, the company continues to buy more Bitcoin at every opportunity.

The purchases were funded by profits from MicroStrategy’s software business, additional stock sales, new debt and, in a short-lived test, even a loan secured by some of the company’s Bitcoin holdings. This coin-buying strategy amplifies Bitcoin’s gains when times are good, but it also exposes investors to more risk when Bitcoin prices are low.

Cryptocurrency is on the rise this year, so MicroStrategy’s stock price is benefiting from the cryptocurrency trend.

How Bitcoin Halving Boosts Cryptocurrency Mining Profits

Bitcoin’s mining reward halving makes it harder to run a profitable mining business — at least for a while. This four-year cycle is codified was designed to limit the supply of new coins while the cryptocurrency creates its real-world demand.

The basic laws of supply and demand dictate rising prices in this scenario, and the Bitcoin price chart has shown this pattern in each of the first three halvings. History doesn’t repeat itself, but it often echoes familiar patterns, and the fourth reward halving cycle looks set to send Bitcoin prices much higher in the next year or so.

This predictable trend is the basis of Michael Saylor’s Bitcoin strategy. It also weeds out weaker hands from the costly Bitcoin mining industry when rewards are low and the price of Bitcoin has yet to begin its bull run. Riot’s attempted purchase of Bitfarms is an ambitious but risky effort to capitalize on the target company’s financial weakness before the cryptocurrency’s price rises again.

There is one clear takeaway for investors about Bitcoin trends in early 2024: understand the cyclical nature of Bitcoin and strategic moves by key industry players around it can provide significant upside. Keep an eye on the players that thrive under pressure, as they are the ones likely to shine when the market recovers. The presence of spot Bitcoin ETFs should boost and support the current cycle, thanks to a large inflow of money from institutional investors.

Fuente

Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

Fuente

Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

Fuente

Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

Don’t miss a beat – Subscribe to receive email alerts directly to your inbox

To check Price action

Surf Hodl’s Daily Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be aware that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Image generated: DALLE3

Fuente

Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

Source: TradingView SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive $600 welcome offer on Binance (Full details).

LIMITED OFFER 2024 on BYDFi Exchange: Welcome Reward Up to $2,888, use this link to register and open a 100 USDT-M position for free!

Disclaimer: The information found on CryptoPotato is that of the writers quoted. It does not represent the opinions of CryptoPotato about buying, selling, or holding any investments. It is advised that you conduct your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.

Cryptocurrency Charts by TradingView.

Fuente