Live Markets: Bitcoin miners due for breather - JPM

Stronghold Digital Mining

11/01/2024 17:15

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      Main U.S. indexes decline: Nasdaq weakest, off ~0.8%
    

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      Utilities weakest S&P 500 sector; Energy sole gainer
    

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      Euro STOXX 600 index falls ~0.8%
    

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      Dollar up; gold dips; crude up >2%; bitcoin up 0.5%
    

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      U.S. 10-Year Treasury yield ~flat at ~4.03%
    

  
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    BITCOIN MINERS DUE FOR BREATHER - JPM
    Shares of bitcoin miners, a proxy for exposure to
cryptocurrencies, have soared on prospects of a spot bitcoin ETF
since October.
    Now that 11 ETFs tracking the world's largest cryptocurrency
have entered the U.S. stock market following a long-awaited
regulatory decision, crypto mining stocks could take a breather,
analysts at J.P.Morgan said.
    There could be selling pressure on bitcoin miners if
investors rotate out of crypto-related stocks in favor of more
direct exposure to bitcoin via a spot ETF, J.P.Morgan analysts
said in a note.
    To put it in context, analysts said that the aggregate
market cap of the 14 U.S.-listed miners under JPM's coverage was
just shy of $17 billion as of Jan. 10, a 131% increase from the
end of September compared to bitcoin's 71% climb in the same
timeframe.
    "We would view any sell-off as a buying opportunity, as the
ETF does not directly impact mining economics or change
competitive dynamics, and we remain bullish on bitcoin and
bitcoin miners in 2024," J.P.Morgan analysts write in a report.
    The miners shares dropped on Thursday.  Bitcoin  BTC= ,
after hitting its highest level in two years earlier in the day,
 gave up some gains but was still up 0.5% as risk appetite was
hurt after a hot U.S. inflation report. 
    Marathon Digital  MARA.O , Riot Platforms  RIOT.O  dropped
around 14%, while Cipher Mining  CIFR.O , Bitdeer  BTDR.O , Iris
Energy  IREN.O  and Stronghold Digital  SDIG.O  declined between
7% and 12%.
    
    (Medha Singh)
    ****
    
    
    FOR THURSDAY'S OTHER LIVE MARKETS POSTS:
    
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    JAPAN STOCKS AT 34-YEAR HIGH, RALLY STILL HAS LEGS - CLICK
HERE
    
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    BITCOIN ETF: KEY QUESTIONS AND ANSWERS - CLICK HERE
    
    BROAD-BASED GAINS DRIVE STOXX HIGHER, COPENHAGEN AT PEAK -
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    EUROPEAN FUTURES RISE, US INFLATION REPORT AWAITED - CLICK
HERE
    
    TO THE MOON? BITCOIN ETFS LIFT OFF - CLICK HERE  
     

    
    
    
    
    
    
    
    

 (Terence Gabriel is a Reuters market analyst. The views
expressed are his own)