Why Are Bitcoin Mining Stocks Soaring?

  Why Are Bitcoin Mining Stocks Soaring? Many Bitcoin Mining Stocks continued to rise today! These small-time players are on the rise as Bitcoin climbs. But can these be good long-term investments?

It is useful to examine in detail what these companies are, so we will examine them in this article.

Bitcoin (CRYPTO:BTC) price started to rise on Wednesday, apparently with interesting news from Latin America. According to data from CoinDesk, the price of Bitcoin has risen 14% in the last 24 hours to approximately $36,500. Therefore, many Bitcoin Mining Stocks, especially small companies, are also climbing today. These include CleanSpark CLSK (NASDAQ) $18,88 +1,46 (+%8,38) up 13 %, SOS Limited SOS (NYSE) $3,93 +0,21 (+%5,65) up 10 %, and Ebang International Holdings (EBON (NASDAQ) $3,57 +0,17 (+%5,00) up 9 %, respectively.

Here are the explanations

One of the biggest factors was that yesterday, politicians in El Salvador voted in favor of the legalization of Bitcoin. Thus, the El Salvador currency and Bitcoin, which were replaced by the US dollar 20 years ago, were accepted as legal tender. With the enacted Bitcoin Law, the price will be able to be paid with Bitcoin in dollars, but it has been clarified that merchants must exclude Bitcoin as a form of payment.

Many Bitcoin Mining Stocks continued to rise today!

This is a first for Bitcoin, apparently it will reverse recent losses and be the catalyst for today's rise. The famous oil pipeline producer Colonial Pipeline has fallen in recent days due to the cyber attack. We know that the American oil pipe manufacturer paid Bitcoin to a hacker group called DarkSide. The FBI announced that about 63,7 Bitcoins were recovered from the payment made by the company. This has shaken the credibility of the blockchain and led to a downtrend in prices overall. This volatility, which is normal in the crypto market, is shaped by global news that causes the price to bounce or fall further in the future. Bitcoin mining stocks such as CleanSpark, SOS, and Ebang are similarly keeping up with this volatility.

Conclusion

Investing in Bitcoin Mining Companies seems risky in the long run because of the volatility it shows. However, these mining companies have the potential to generate incredible returns in the short term. Many Bitcoin Mining Stocks continued to rise today!  

Source: The Motley Fool

 

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