• Bitcoin’s price is down for the week, but it’s still up about 50% year-to-date. Meanwhile, Bitcoin mining stocks have jumped by over 200% YTD.
• One miner stock, Cipher Mining (CIFR), is up by a whopping 389% for the year so far.
• Crypto stocks are up by quite a bit more this far into 2023 than the broad stock market benchmarks like S&P 500 and NASDAQ Composite which are up 14% and 28% respectively.
Bitcoin Price Trends
Bitcoin price fell 10% against USD Thursday amid speculations that SpaceX might have sold its remaining holdings. That brings the most work-based cryptocurrency down to what may be a bargain price at this time in its halving cycle, at under $26,000.
YTD Performance of Bitcoin Miners
While markets are watching crypto prices after this week’s turbulence, crypto stocks are another class of blockchain assets in the bargain bin this week, especially with their soaring YTD trendline. The S&P 500 Index of the top 500 U.S. companies has increased by a very healthy 14%, while tech-focused NASDAQ Composite is up a whopping 28%. The Dow Jones Industrial Average is lagging behind at 4%. However, some Bitcoin miners such as Nvidia (219%), Meta (164%), and Tesla (117%) have seen even higher returns year-to-date when compared to other indices and assets.
Cipher Mining Soaring High
Among all these miners stands one miner stock which has outperformed all – Cipher Mining (CIFR). This stock has surged by an astonishing 389% since January 2021 making it one of the best performing asset classes of 2021 so far!
Uncertainty Over Crypto Prices
With the recent fall in BTC prices due to speculations around SpaceX selling its BTC holdings there is much uncertainty in crypto markets currently about future prices. This also affects many miners who rely on BTC mining activities for their profits and revenues alike as they could suffer from reduced profitability if BTC prices remain low or continue to decline further in near future.
Conclusion
Crypto stocks have been one of the best performing asset classes during 2021 so far with several stocks increasing significantly above broader market benchmarks like S&P500 and NASDAQ composite index which increased only 14%-28%. Amongst all these miners Cipher Mining has soared almost 400%, making it one of the biggest gainers year to date! There remains however an element of uncertainty around crypto markets due to volatile nature of cryptocurrencies which could affect future profitability for many miners if BTC prices continue declining further going forward too!