Three Top Ways to Safely Trade the Cryptocurrency Market
One of the biggest moneymakers of 2021 has been Bitcoin.
After starting the year at $28,784, the digital currency rallied to a high of $68,978.
While it recently pulled back to $57,680, chances are good it could see higher highs.
According to Fundstrat Global Advisors’ Tom Lee, Bitcoin could run to $100,000. Fidelity’s director of global macro, Jurrien Timmer, as noted by Yahoo Finance, says Bitcoin could hit $100,000 by 2023.
All thanks to growing retail and institutional interest. Ark Investment Management CEO Cathie Wood, for example, says Bitcoin could reach $500,000 by 2026, noting that if “institutional investors move into bitcoin and allocate 5% of their portfolios,” the value of a bitcoin would rise to around $560,000 by 2026, as reported by MarketWatch.
In addition, Woods noted, “We can see who’s moving in and it looks like strong, institutional holders are moving in [to Bitcoin]. Why are they moving in? Because the correlation of returns among crypto, especially Bitcoin, and other assets – stocks, bonds, currencies, commodities – are very low,” as noted by The Daily HODL.
That’s great news for cryptocurrency traders.
It’s also great news for mining stocks, which run alongside Bitcoin prices. The higher Bitcoin moves, the higher miners often move. In fact, here are the top three to keep an eye on.
Marathon Digital Holdings (MARA)
Marathon Digital is one of the top beneficiaries of the Bitcoin boom. Since bottoming out around 62 cents in early 2020, MARA exploded to a recent high of $50 – and could push even higher with Bitcoin. Earnings are just as impressive.
As noted in a company press release, in its third quarter, the company increased total revenue to $51.7 million, a 76% increase from $29.3 million in the second quarter of 2021 and a 6,091% increase year-over-year from $835,000 in the third quarter of 2020. It also produced 1,252 self-mined bitcoins in the third quarter of 2021, a 91% increase from 654 bitcoins in the second quarter of 2021; as of September 30, 2021, produced 2,098 self-mined bitcoins in 2021.
Riot Blockchain (RIOT)
Riot Blockchain has been just as explosive. From a low of 51 cents in early 2020, RIOT is now up to $35 a share – and has also pushed higher alongside Bitcoin.
In its third quarter, the company increased total revenue by 2,532% to a record $64.8 million for the three-month period ended September 30, 2021, as compared to $2.5 million for the same three-month period in 2020. It increased mining revenue by 2,099% to a record $53.6 million for the three-month period ended September 30, 2021, as compared to $2.4 million for the same three-month period in 2020.
In addition, RIOT increased BTC production by 482% to a record 1,292 Bitcoin during the three-month period ended September 30, 2021, as compared to 222 Bitcoin during the same three-month period in 2020.
Bit Digital (BTBT)
After finding support around 38 cents, the BTBT stock is now up to $8.78. In its third quarter, Bit Digital completed its exit from China, and as of November 17 had 79.1% of its fleet deployed or awaiting installation in North America. In addition, BTBT owned 27,744 miners as of September 30, 2021, with an estimated maximum total hash rate of 1.603 Exahash.
In addition, H.C. Wainwright analyst Kevin Dede has a $14 price target. “The company has transformed ‘from an obscure technology opportunist, to a full-fledged, transparent, North American-based industrial bitcoin miner,’” Dede said, as quoted by TheFly.com.