Bitcoin price is up, but BTC mining stocks could remain vulnerable throughout 2023
Bitcoin miners have been under duress for more than a year and even with BTC price trading at $24,000, BTC mining stocks could still face challenges throughout 2023. Bitcoin mining stocks usually follow BTC’s price because it directly influences the company's earnings. These stocks were beaten down heavily in the last quarter of 2022, especially in the month of December. The downturn after FTX's collapse worsened with the bankruptcy filings of the largest U.S.-based Bitcoin mining company, Core Scientific. During this time, other mining stocks, like Marathon Digital Holdings (MARA) in the chart below, exhibited a weak correlation with Bitcoin’s price, suggesting that December’s downturn was probably overblown. MARA/USD price chart with MARA-BTC Correlation Coefficient index. Source: TradingView The negative trend reversed at the start of 2023 as most mining stocks posted impressive gains. The Hashrate Index mining stock index, which tracks the average price of publicly listed ...