According to Nick, an analyst at data source company Ecoinometrics, Bitcoin mining stocks 10 times has the potential to generate income.
In a report published earlier this week, Nick claimed that Bitcoin (BTC) miner shares could be as valuable as gold miners. Prediction, bitcoin market in the future gold market, taking into account BTC’s ability to be a more tradable and cheaper safe-haven asset to store. Therefore, stocks associated with cryptocurrencies can mimic gains witnessed in the shares of gold-related mining companies.
A subsidiary of Marathon Digital Holdings (MARA) Marathon Crypto Mining Bringing his example, Nick revealed the possible increase in Bitcoin mining stock price. According to him, BTC has increased by 5 times and Marathon by 40 times since the last Halving event in 2020.
Current market value of Marathon Digital 3 billion dollars. If the 10x rally happens as Nick predicted, the Canadian mining giant Barrick Gold will be placed on an equal footing. Barrick’s market cap was $37 billion at the time Nick estimated.
How are Bitcoin (BTC) stocks performing?
Several companies have added BTC to their balance sheets. Many institutional investors are directly involved because of policy reservations. BTC could not buy. Hence, such companies offered investors an alternative to their indirect exposure to BTC.
Thanks to early entrants like Microstrategy, Bitcoin shares posted impressive gains and further outperformed BTC gains:
“This is what we saw with the Bitcoin Treasuries Index. While half of this index is made of MicroStrategy (which isn’t exactly a small stock), it has outperformed Bitcoin 2x since Halving.”
In addition to these, funds traded on the Bitcoin exchange (ETF‘s) also found many buyers. The fact that people still continue to invest in BTC futures indicates a bullish sentiment prevailing in the markets.
However, Nick also warns of the continued high put/call ratio in the options market. According to him, contrary to the still bullish picture, from buying (call) 3 times more sales (idol) there is.
BTC probably in Q2 100,000 We can expect to see Bitcoin mining stocks post big gains as well.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.