US Crypto-Related Stocks Surge Amid Broader Market Uptick Following Bitcoin's Halving
Summary:
Cryptocurrency-related shares in the US, including Marathon Digital, CleanSpark, Riot Platforms, Cipher Mining, and Hut 8, posted significant gains a few days after Bitcoin's halving event. Stronghold Digital Mining recorded the highest percentage increase at 35.3%. These gains occurred despite the halving of Bitcoin mining rewards, and alongside broader US market gains. However, warnings from financial experts suggest potential market volatility because of high inflation rates, rising bond yields, and speculation on the Federal Reserve’s potential rate cuts.
Crypto-focused shares in the United States made significant strides on Monday, following a wider market uplift that came a few days after Bitcoin's (BTC) halving. Noticeably, some stocks experienced double-digit percentage increases. The five major publicly traded Bitcoin mining companies in the U.S. — Marathon Digital (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), Cipher Mining (CIFR), and Hut 8 (HUT) — all saw market surges on April 22nd, with the trend extending into after-hour trading, according to Google Finance.
The biggest win of the day was Stronghold Digital Mining (SDIG), which increased by 35.3% to $3.64 and added a further 4% in after-hours trading, touching nearly $3.80. Riot Platforms also experienced a significant increase of 23%, with the share price bouncing to $11.24, followed by a 3.2% hike post-trading hours to $11.60.
These figures are set in the context of the top 10 United States crypto-mining stocks, scaled according to their profitable trading day on April 22nd. Crypto miners across the U.S. enjoyed an uplift on the same day, continuing the trend started on Friday, April 19th. The Valkyrie Bitcoin Miners ETF (WGMI) which includes mining stocks like chip maker Nvidia (NVDA), posted an 11% gain. This continued into after hours with a 3% increase to $16.69.
Interestingly, these stock boosts occurred despite Bitcoin rewards for mining being halved to 3.125 BTC per block after Saturday's halving event. This positive market trend aligns with broader U.S market gains as major indexes such as the Nasdaq Composite and the S&P 500 rose by 1.1% and 0.8% respectively post a period of sustained weekly losses.
However, on April 22nd, CIBC Private Wealth's Chief Investment Officer, David Donabedian warned that the market might hit a rough patch due to high inflation, increasing bond yields, and speculation on the Federal Reserve's predicted rate cuts. In addition to this, he hinted that the release of first-quarter earnings from nearly half of the country's top companies this week might add to market instability.
Despite the halving event, Bitcoin's price has increased by 4.5% to $66,810, according to Cointelegraph Markets Pro. Market observers had voiced mixed predictions regarding the cryptocurrency's price post the halving event.
In other news, both the crypto exchange Coinbase, and MicroStrategy, a Bitcoin-purchasing software company, made gains, 7% and 12.7% respectively, with slight increases in after-hours trading.
Published At
4/23/2024 4:55:36 AM
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