Crypto mining stocks are up again, as the price of Bitcoin (BTC-USD) hit a 12-month high of over $31,000 before pulling back.
Bitcoin was selling for $30,790 early on July 6.
This was enough to bring bears out of hibernation on such stocks as Marathon Digital (NASDAQ:MARA), Hut 8 Mining (NASDAQ:HUT), CleanSpark (NASDAQ:CLSK), Hive Blockchain Technologies (NASDAQ:HIVE), Riot Platforms (NASDAQ:RIOT) and even MicroStrategy (NASDAQ:MSTR), a big holder of Bitcoin. All were up slightly in pre-market trading, most rising between 2-3%.
Is Bitcoin Back?
Bitcoin owners have nearly doubled their money since the start of 2023 when Bitcoin was selling at about $16,200.
Most of the rise is built on the big tech run, which has doubled the price of stocks like Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA). Blackrock (NYSE:BLK) CEO Larry Fink has also helped crypto. He has said Bitcoin could “revolutionize finance.” Nasdaq (NASDAQ:NDAQ) recently refiled Blackrock’s application for a spot Bitcoin exchange-traded fund (ETF).
Analysts expect the new filing to be approved by regulators. A June filing was rejected. Fink sees Bitcoin as a hedge not just against the dollar but against all currencies.
The Securities and Exchange Commission (SEC) has been at war with crypto all year, calling many coins unregistered securities and suing exchanges. While Bitcoin bulls hope the Supreme Court will eventually stop the agency, most of the new buyers come from outside the U.S.
Bitcoin traders are doing all they can to spur the frenzy. Binance CEO Changpeng Zhao expects a big bull run in 2025 after a halving event next year. Analyst Willy Woo says Bitcoin is in the early stages of a short squeeze.
Crypto Mining Stocks: What Happens Next?
Trust in Bitcoin is based on belief in the word of private parties. Many have proven to be either incompetent or crooked. Crypto prices rise with the market’s greed, falling when fear takes over. The current action suggests optimism is back in style.
As of this writing, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
