Bitcoin mining stocks have been soaring in 2023, with the HI Crypto Mining Stock Index up a staggering 115% so far this year. This rally has outpaced the gains of Bitcoin itself and even the Nasdaq. The best performer has been Core Scientific, which has seen a gain of 455%.
According to the report from HashRate Index, the fortunes of BTC mining stocks changed for the better in 2023, after a tough year in 2022 when most stocks plummeted by 80-90%. This year’s rally has injected a sense of optimism into the sector, with significant gains for most mining stocks.
The report stated that Digihost, Cipher, Riot, Iris Energy, and Marathon are among the best performers in the sector. Investors should consider diversifying their exposure by owning a basket of at least three mining stocks.
For the future, the report claimed that the performance of Bitcoin mining stocks would depend on the Bitcoin price and the general risk sentiment of financial markets. However, the author is bullish on the Bitcoin price in the short term and optimistic about continuous upward price action for mining stocks.
If bitcoin prices continue to rise, most mining stocks could increase by more than 50%, while the biggest gainers could soar by more than 150%. The author holds a semi-diversified portfolio of the three mining stocks he believes will be most positively impacted by a continuous Bitcoin price increase.
Nevertheless, Bitcoin mining stocks have been a bright spot in the market this year, and investors looking to gain exposure to this sector should consider a diversified basket of stocks.
Bitcoin Takes Breather: Hashrate Index Report
In a turn of events, according to the latest report from Hashrate Index, Bitcoin seems to be taking a break after an upward trend of over a month.
The report reveals that at the time of writing, BTC is currently valued at approximately $27,500, a 10% decrease from the local top on April 14th, which saw the cryptocurrency hit $30,800.
This news is concerning for the hash price, as the recent difficulty all-time high on Thursday contributed to a compression of the hash price.
The report also shows that this difficulty adjustment marks the fifth consecutive one, making it the longest streak since difficulty rose six times in a row between December 2021 and February 2022.
However, there may be some hope on the horizon. The report suggests that the streak could come to an end with the next difficulty adjustment, as BTC’s hashrate plateaued towards the end of last week.
Despite surging to an all-time high of 360 EH/s on April 19th, the hash price fell over 10% when the April 20th difficulty adjustment kicked in, and Bitcoin’s price slipped. As a result, every miner’s break-even costs are now lower.
All of these factors indicate that a negative adjustment could be around the corner, providing some reprieve for those in the cryptocurrency market.
The report concludes that while Bitcoin may be taking a breather for now, it’s important to keep an eye on future developments and how they might affect the market.