Good news for crypto miners! The crypto mining stocks are steadily rising after Bitcoin shows recovery signs in the market. This past week, Bitcoin has shown a great improvement by recovering to its previous resistance zone at $21k after it fell at $19K.
The share prices rose by 9.6% on Wednesday and Thursday. Digihost Technology, TeraWulf, and Marathon Digital rose by 26.6%, 18.94%, and 17.62% respectively. Additionally, Riot Blockchain (RIOT 3.41%) increased by 16.8% and Bitfarms (BITF 2.26%) climbed to 13.7% on Thursday as well.
Joseph Vafi, managing director at Canaccord Genuity expressed that the miners are relieved that Bitcoin didn’t fall to $18k.
Miners have put a bet on Bitcoin to rise in the coming weeks, which might sound a bit risky in case BTC prices plunge down again, but miners seem to be bullish on the price. D.A. Davidson believes it is a good time to buy crypto mining stocks as it looks more promising than ever.
The difficulty of mining bitcoin also fell below 6.7% since May 22 as miners unplugged unprofitable machines, based on the data gathered from Blockchain.com. Giving the standing miners an opportunity to mine Bitcoin and build revenue.
Nonetheless, Davidson believes the stocks have been undervalued in progressing years. This is true because, in the last two months, 5 publicly listed miners have lost 64% of their stock value. “The stocks are just moving a little bit with bitcoin coming off of a bottom, honestly,” Vafi observes.
Whatever the case may be, miners can still profit by selling bitcoin.