Mining company shares fell during the fall in the price of BTC
Bitcoin is trying to climb to $50,000 but is facing resistance on low timeframes. Despite active attempts to recover so far, this first cryptocurrency has failed.
The fall in the price of bitcoin led to an overall market downturn. Many investment products based on BTC (derivatives and other derivatives) were affected. Many mining companies have also suffered heavy losses over the past 7 days, according to Arcane Research.
As the price of bitcoin fell 20% from the established high, the value of the shares of the 15 largest mining companies has declined from 300% to 134% since the beginning of the year. This is clearly visible in this photo:
An especially large drop was in November 2021, when the price of bitcoin dropped significantly. At the same time, the bitcoin mining index has more than halved, which demonstrates the high volatility of stocks.
Despite this, the securities of mining companies are in high demand. Until the United States has provided institutional investors with access to other investment products, they are buying shares of mining companies or firms actively investing in cryptocurrencies like MicroStrategy (MSTR).
Among the companies represented in the Mining Index, Hut 8 had the worst performance. Its share price fell 27%. Despite this, the overall growth for the year remained at 234%.
On the other hand, MicroStrategy shares also fell sharply on December 3 to the $ 500 mark. This is because the price of a share is highly correlated with the value of bitcoin. This can be seen in this graph:
As the value of BTC recovers, stock performance will also go up. As the value rises, Bitcoin will move into the resistance zone at $ 60,000. If this milestone is overcome, it will become possible to establish a new historical maximum for the first cryptocurrency.
We will follow the development of the situation. Read our news and subscribe to social networks. You can also start mining cryptocurrency using Hive OS service.
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