Bitcoin mining stocks jump 24% as macro climate boosts market

Bitcoin (CRYPTO:BTC) mining stocks surged as much as 24.4% on October 28, driven by Bitcoin’s rise past $70,000 and an increasingly favorable macroeconomic environment. 

According to Mitchell Askew, head analyst at Blockware, rising global liquidity due to deficit spending and lower interest rates is pushing investors towards Bitcoin markets. 

Askew noted, “Investors are fearful of high inflation over the long term, as evidenced by poor performance from treasury bonds since the September rate cut.”

Among Bitcoin miners, Singapore-based Bitdeer Technologies (BTDR) led the rally with a 24.4% gain, while IREN, Gryphon Digital Mining (GRYP), and Hut 8 (HUT) saw increases of 17.8%, 16.5%, and 15.5%, respectively. 

Marathon Digital (MARA) and CleanSpark (CLSK) posted double-digit gains, rising 11% and 10.2%, while Riot (RIOT) was up 9.5%.

Askew attributed part of the surge to miners’ diversification into AI and high-performance computing sectors. 

He emphasized that miners who became unprofitable after April’s 2024 Bitcoin halving event have largely exited the market, reducing sell pressure and paving the way for positive price action. 

“This is evidenced by the fact that mining difficulty is about to increase for the third time,” Askew added.

Recent developments have also drawn attention to Bitcoin’s expanding use in international contexts. 

According to Matthew Sigel, Head of Digital Assets at VanEck, nations like Argentina, the United Arab Emirates, and Ethiopia have begun utilizing state resources for Bitcoin mining. 

Additionally, Sigel highlighted plans among BRICS members to settle international trade with Bitcoin to reduce reliance on the US dollar.

Bitcoin’s price rally follows two weeks of net inflows into US spot Bitcoin exchange-traded funds (ETFs), totaling over $3 billion. 

The cryptocurrency recently crossed the $70,000 mark, supported by the emergence of a “golden cross” pattern in its charts, indicating potential for further gains.

VanEck predicts that Bitcoin could reach $2.9 million per coin by 2050, requiring a compounded annual growth rate of 16.6% over the next 25 years.

At the time of reporting, the Bitcoin price was $70,066.97.