Cryptocurrency mining companies fared well on the stock market on Wednesday, boosted by some individual good news and optimism about cryptocurrencies in general.
Many of them closed significantly above their price for the day. cleanse park (CLSK 22.80%) While there was a sudden increase of about 23%, Marathon Digital Holdings (Mara 16.10%) wasn't far behind, with a 16% increase. riot platform (riot 11.81%) Although the company didn't reach those heights, it did give shareholders a gain of nearly 12%.
The Fed will continue to respond.
As the stock market nears its close, the most influential event hits cryptocurrencies. This was the Fed's decision to keep interest rates unchanged. At the time, the Fed also signaled that it intends to cut rates perhaps three times this year.
So unless something unexpected and relatively dramatic happens to the global or U.S. economy, it's almost certain that interest rates won't rise. increase in a few days.
Cryptocurrency investors tend to encourage people to take money out of “safe” investments (such as government bonds and high-quality corporate bonds) and invest in riskier assets, thereby reducing interest rates from stable to declining. I like it.
As cryptocurrencies remain volatile, the risk scale remains relatively high. So this was a massive top-down development driving top-down cryptocurrencies. For example, the underlying assets of top crypto miners. Bitcoin — and related investments will increase on hump day.
When it comes to individual crypto mining stocks, Wednesday's news is generally very positive, with rising tides tending to lift most, if not all, boats.Influential “big four” banks well before the market opens. JP Morgan Chase Upgraded recommendations for Riot platforms. Analyst Reginald Smith now rates the financial institution an Overweight (Buy), up a notch from its previous Neutral rating. The target price is $15 per share.
This comes on the heels of another analyst's bullish move in the crypto mining space. On Tuesday, BTIG commentator Gregory Lewis nearly doubled his price target on Cleanspark, increasing it from $12 to $22 per share and maintaining a Buy rating.
Investors prefer Bitcoin spot ETFs
Due to the Fed's decision, all lights for cryptocurrencies remained green. Meanwhile, in the background, money continues to flow into spot Bitcoin exchange traded funds (ETFs), the monster engine that has driven Bitcoin's rise since near the beginning of the year.
Some predict that Bitcoin's already high price could more than double in the near future. I don't know if I would be that optimistic. After all, the major coins are still unused and flawed as stores of value. However, there are plenty of bulls in this market at the moment, and it looks like they will continue to push the cryptocurrency higher.
JPMorgan Chase is an advertising partner of The Motley Fool's Ascent. Eric Volkman has a position in Bitcoin. The Motley Fool has positions in Bitcoin and JPMorgan Chase and recommends Bitcoin and JPMorgan Chase. The Motley Fool has a disclosure policy.
