Bitcoin Mining Stocks Rebound on Halving Momentum

20 Apr, 2024 Updated 27 Aug, 2024

By David Pokima

Crypto Journalist

Expertise : Finance/Crypto Journalist

David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.

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Bitcoin mining stocks have regained momentum a few hours to the halving following weeks in the red zone. Technology stocks witnessed slow growth in the market due to tension in the Middle East as stocks and crypto assets continued their correlation.

The Bitcoin halving will take place today and slash miner rewards by 50% from 6.25 BTC to 3.125 BTC per block. This event has ignited several movements and reversals in the market in the last two months. At press time Bitcoin price is at $63,501 as the asset fights off liquidations picked up this week.

Miners have been at the center of the halving narrative because their rewards will be slashed coupled with improvements to capacity and hashrate across mining sites. Despite this, BTC haling is widely perceived as a bullish activity and tipped to ignite the next bull run.

Bitcoin Mining Stocks Rally

The stocks of publicly traded Bitcoin mining stinks have soared with the crypto market to continue its correlation. Canadian-based miner Hut 8 (HUT) is up 2.31% in the last 24 hours. The crypto miner shares recorded more gains this week in the run-up to the halving.

Marathon Digital (MARA) has surged 9.78% today wiping out weekly outflows as investors were skeptical about the direction of mining firms. Riot platforms (RIOT) post wider gains of 10.13% going into the halving.

RIOT saw 26.37% exits in the last month opening up debates about the sustainability of this rally in the long run. CleanSpark (CLSK) notched a 5.9% boost in the market, trading similarly to other miners.

Why Are Bitcoin Mining Firms Surging?

Weeks leading up to the halving saw many projections of Bitcoin mining firms losing value. This is due to the 50% slash in mining rewards and competition faced by most companies.

However recent events show that miners have slowed selling pressure significantly pointing to previous sales and better preparation for the Bitcoin halving. Mining stocks are also high because bullish traders expect the price of the asset to rally which means more money for mining firms.

This year, short sellers have bet against crypto stocks expecting the “hype” of spot Bitcoin ETF approvals and the halving to lose stream.

Also Read: Why Does Solana Outperform The Market?

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Bitcoin (BTC) Price

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.