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Wednesday

Bitcoin

<p class="is-style-lead">Bitcoin mining stocks bounced back in Wednesday’s pre-market session, helped by the recent <a href="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a> rebound.&nbsp;</p>
<p>Riot Platforms shares rose by over 1%, while Marathon Digital, the biggest miner in the industry, rose by 1.65%. Other companies like CleanSpark (CLSK), Iris Energy (IREN), Core Scientific (CORZ), and TeraWulf (WULF) rose by over 1.5%.</p>
<h2 class="wp-block-heading" id="bitcoin-price-is-rebounding">Bitcoin price is rebounding</h2>
<p>These stocks rose because of the ongoing Bitcoin price action. After bottoming at $53,520 last Friday, Bitcoin rose to over $59,390 on Wednesday.&nbsp;</p>
<p>This rebound happened as the industry sent mixed signals. On the one hand, the German government continued moving Bitcoins to exchanges ahead of an eventual sell-off. It deposited 5,013 more coins to Kraken, Coinbase, and Cumberland on Wednesday and now has over 18,000 coins remaining.</p>
<p>At the same time, wallets associated with Mt.Gox have started moving coins, which will lead to more supply on exchanges.</p>
<p>On the positive side, there are signs that <a href="https://crypto.news/blackrocks-ibit-etf-holds-18b-in-btc-amid-continuous-inflows/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin ETFs are seeing inflows</a>. Nine ETFs added 4,601 coins on Tuesday, worth over $263 million. Some of the best performers were funds by Blackrock, Fidelity, Ark Invest, and Bitwise.</p>
<p>Meanwhile, data by CryptoQuant shows that BitMEX had a big outflow of over 35,000 coins this week. The company’s data shows that such events are usually predictable signs that happen before a big Bitcoin price increase.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr">BitMEX: The Second Largest <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Bitcoin</a> Outflow<br><br>“The recent outflow of 35,486 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$BTC</a> from BitMEX should not be ignored. Historically, such events on BitMEX are predictable signals that precede Bitcoin price increases.” – By <a href="https://twitter.com/joao_wedson?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@joao_wedson</a> <br><br>Read more 👇<a href="https://t.co/dFu29iQDXZ" target="_blank" rel="noopener noreferrer nofollow">https://t.co/dFu29iQDXZ</a> <a href="https://t.co/gKfjqKv9Wg" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/gKfjqKv9Wg</a></p>— CryptoQuant.com (@cryptoquant_com) <a href="https://twitter.com/cryptoquant_com/status/1810972498776785167?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">July 10, 2024</a>
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<p>Bitcoin price also rose after Jerome Powell, the head of the Federal Reserve, said that the bank was willing to cut interest rates if inflation continues falling. The most recent data showed that the headline CPI and PCE numbers retreated in May.</p>
<h2 class="wp-block-heading" id="bitcoin-mining-stocks-risks-remain">Bitcoin mining stocks risks remain</h2>
<p>Still, two key risks could affect Bitcoin mining stocks. First, recent data showed that most of them are producing fewer Bitcoins because of the <a href="https://crypto.news/5-things-weve-learned-since-the-bitcoin-halving/" target="_blank" rel="noopener noreferrer nofollow">halving event</a><strong>.&nbsp;</strong></p>
<p>Marathon Digital produced <a href="https://ir.mara.com/news-events/press-releases/detail/1361/mara-announces-bitcoin-production-and-mining-operation#:~:text=In%20June%2C%20MARA%20achieved%20a,according%20to%20the%20manufacturers%27%20specifications.&amp;text=As%20of%20June%2030%2C%202024%2C%20the%20Company%20holds%20a%20total,sell%20any%20bitcoin%20in%20June." target="_blank" rel="noopener noreferrer nofollow">590 coins</a> in June, down by 40% from the same month in 2023 and down by 4% from the previous month. TeraWulf <a href="https://investors.terawulf.com/news-events/press-releases/detail/80/terawulf-announces-june-2024-production-and-operations" target="_blank" rel="noopener noreferrer nofollow">produced</a> 136 coins in June after mining 144 coins in the previous month. Other companies like CleanSpark and Cipher Mining reported a drop in Bitcoin production.</p>
<p><em>Bitcoin price chart</em></p>
<p>Second, there is a risk that the ongoing Bitcoin recovery is part of a dead cat bounce, which happens when an asset in a downtrend experiences a brief rebound. That scenario is possible since the coin has formed a big double-top pattern, a popular reversal sign.&nbsp;</p>
<p>Therefore, Bitcoin mining stocks will likely resume their downtrend if BTC price recovery falters.&nbsp;</p>

Bitcoin mining stocks are crawling back, but gains could be brief

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