The stock prices of major Bitcoin mining companies, such as Marathon Digital Holdings, Riot Platforms, and CleanSpark, have been going down for three days in a row.
Marathon Digital Holdings, once considered the biggest public Bitcoin miner, has seen its stock value drop by 25% over the past month, while Riot Platforms has seen a nearly 30% drop. The value of the Valkyrie BTC Miners exchange-traded fund (ETF) has also dropped by 28% this month.
Stock prices are going down because more people are selling their cryptocurrency mining stocks, and there are political issues because of the recent fighting between Iran and Israel. Because of these unknowns, investors have rushed to buy safer investments.
Bitcoin Executives Stay Positive Amidst Hurdles
Bloomberg noted that despite these problems, the CEOs of major mining companies are still optimistic. They say that the companies’ low costs, use of cutting-edge mining technology, and the ongoing popularity of cryptocurrencies could help them deal with the $10 billion a year loss in income they expect to experience after BTC is split in half.
Industry players also hope that the rise in demand caused by the launch of new spot ETFs will boost Bitcoin’s price enough to balance out the negative effects of the upcoming halving. Since January, when traditional asset management companies first introduced them, these ETFs have brought in a total of $12.4 billion.
Recently, Bitcoin ETFs were approved in Hong Kong, which is good news for the Bitcoin world Sumit Gupta, co-founder of CoinDCX, one of India’s biggest exchanges, expressed excitement about approving Asia’s first major ETF.
“Institutional involvement has historically served as a driving force behind the increased attention and traction observed in various asset classes. The fact that this development has occurred in Asia for the first time brings it closer to our home, underscoring the global nature of this evolving narrative. The trajectory of the crypto industry is moving in a direction that fosters adoption, albeit gradually, signaling promising prospects for its future growth and mainstream acceptance.”
Sumit Gupta, co-founder of CoinDCX
