Odaily Frontline | The average return rate of Bitcoin mining company stocks during the year has exceeded 300%
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Summary:
Summary:
- Bitcoin mining stocks have returned an average of 327% YTD.
- As BTC hits new all-time highs, the gains in these stocks are slowly entering the "caution region".
The stock prices of RIOT and Marathon, the top two bitcoin mining companies in the United States, have risen by 492.6% and 387% in the past 12 months, respectively, outperforming even Bitcoin (170%) and Ethereum (368%).
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Bitcoin mining stocks need to be cautious
The rise in bitcoin mining stocks this year has been compared to the soaring share prices of gold mining companies in the 1970s and early 2000s.
Furthermore, a similar trend emerged three years ago.
However, the potential for fleeting price increases over the past few months is also a reason for caution. Bitcoin’s rally in 2017 turned out to be a short-lived bubble, and this year’s rally could eventually turn lower, having a similar effect on crypto stocks.
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Benchmark Tesla
Alternative asset manager Upslope Capital Management reported a similar uptrend in its EV sector, with rolling 60-day average returns and median gains of 143% and 162%, respectively.
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EV company stock 60-day return, source: Twitter
More specifically, hardware manufacturing businesses and institutional mining support businesses like Argo Blockchain PLC have seen an average 60-day return of 74.6%.
Shares of U.S. and Canadian bitcoin mining companies rose.
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In addition, “Bitcoin” search data on Google shows that investor interest in Bitcoin is well below its peak in 2017.
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Google search volume for "Bitcoin" (blue) and "Tesla Inc." (red) Source: Google Trends
Searches for “Tesla Inc.”, on the other hand, saw a noticeable spike throughout the year. Search trends for "Bitcoin" are approaching their 2019 peak and may slightly outpace interest in "Tesla Inc."
