The cryptocurrency market’s price surge has led to significant gains in various sectors, including Bitcoin (BTC) miners, blockchain-based companies, and yield farmers.
BTC miners have experienced more than a 10% increase in their stock value as the asset’s price hovers around $35,000, nearing its 17-month peak.
Marathon Digital Holdings (MARA) has witnessed a 10.54% uptick in its stock price, trading at $9.86. Similar trends can be observed in Riot Platforms (RIOT) and CleanSpark (CLSK) with gains of 10.68% and 12.08%, respectively.
This isn’t the first time that mining-related stocks have surged, as Bitcoin’s price crossed the $30,000 mark, signaling positive weeks ahead for the market and miners who persevered through challenging times.
In previous months, digital asset miners suffered losses due to declining prices amidst a broader market downturn and industry setbacks. The situation worsened due to tighter regulations on miners.
To survive, miners had to adopt unconventional strategies, with some selling equipment and others liquidating their Bitcoin holdings to stay afloat until the next bull market.
This year has seen a turnaround as miners have been accumulating BTC in anticipation of the halving event, which could potentially usher in another bull market.
Marathon Digital has posted a 188% growth in its stock price this year, while Riot Platforms and CleanSpark have recorded increases of 231% and 128% in the same period.
If you’re a cryptocurrency trader who believes that a bull market is on the horizon, I recommend focusing on Bitcoin mining stocks to maximize your returns.
Institutional products are experiencing growth as well. The impact of surging prices is evident in digital asset-based products across various regions. Last week, these products saw an 18-month high in inflows, totaling $326 million, with Bitcoin accounting for 90% of these inflows.
Bitcoin products received $296 million in inflows, while short Bitcoin products also posted gains of $15 million after trading at lower levels for several weeks.
Among altcoins, Solana (SOL) emerged as the top performer with $24 million in inflows, maintaining its status as an institutional favorite, while Ethereum (ETH) saw outflows of $6 million.
The anticipation of a potential approval for a spot Bitcoin ETF by the Securities and Exchange Commission (SEC) remains a major driver for the rise in miner stocks and inflows into digital asset products. Leading firms project the possibility of approval in 2024, drawing significant investments into the sector.
Monthly inflows have now surpassed $400 million, with the United States contributing only 12% of the total, while Canada, Germany, and Switzerland account for the majority, with $134 million, $82 million, and $50 million, respectively.