Why is crypto down today, CoinDesk stock market, ETH btc miners are up

Bitcoin may be down, but today are soaring these cryptocurrency miners

Over the weekend, stocks couldn't go up with Bitcoin, but today they go up. However, are the best way to bet on Bitcoin's rising price?

What happened

The surge in Bitcoin has now faded. CoinDesk says that on Sunday, bitcoin touched the ever-high amount of $24,273 but has been pulled down at approximately 6 percent. But although Bitcoin today is down, stocks are still up for Bitcoin miners. Consider the end of the day for these stocks:

The movement of these stocks may have a reason that is very simple: stocks do not trade on the weekend. Cryptocurrencies such as bitcoin can, however, be purchased and sold 24 hours a day, 7 days a week.


And what are we doing?

Bitcoin reached its highest all-time over the weekend as the market was locked. Since crypto-monetary stocks appear to follow bitcoin's prices up and down, now that the stock market is open, it makes only sense to see them up today.

To be sure, alternate catalysts may be omitted. None of these companies posted news, and from prominent stock analysts I could not find the new coverage. Moreover, Marathon, Riot Blockchain, and Bit Digital stocks have no reason to think they have been squeezed out of short supplies. Each stock has minimum, short-term interests (people who bet against these stocks) and can cover them all in one day, according to Nasdaq data. It's enough to claim that it's not a mature short-squeeze situation without being too technical.

Here's why crypto-currency mining stocks obey the price of bitcoin: a decentralized computer network that monitors transactions operates the bitcoin network. If you like you might even set up your own machine, but you'd combat faster and stronger computers. These compete against each other to process transactions as quickly as possible and the winner wins a new Bitcoin. This is the mining method for cryptocurrencies.

It has a real cost for mining bitcoin. Miners pay for their power, machinery and rooms. Although the cost structure of each company is special, in the last few years they have all tried hard to make a profit. Over time, the cost for my bitcoin is rising; it is not profitable if the price of bitcoin does not increase quickly enough.

Take into account recent Bit Digital financial info. On December 18, the results were announced for the third quarter of the year 2020, covering the results until Sept. 30. The company had net losses of less than 1 million dollars in the span of nine months from ongoing activity. That is, his company practically also broke. But the rates of Bitcoin were less than $10,000 for much of the time. Since then the price has more than doubled and the profitability of Bit Digital has improved.

All produce revenues from bitcoin mining, including Marathon, Blockchain Riot and Bit Digital. Since Bitcoin prices have more than doubled since September, they could start producing more sales and raise prices. That is why Bitcoin increases these stocks.

What is the situation now?

Warren Buffett once said in the investing legend, "A horse that can count to ten is a remarkable horse — not a remarkable mathematician." It meant that the business can standout in its sector as opposed to others. I personally assume that this applies to miners in cryptocurrencies.

I like cryptocurrencies, don't get me wrong and I even bought Ether and Bitcoin. I consider this to be a simple case of demand and supply. In particular, Bitcoin's supply is small – we saw an increase in corporate demand recently. For instance, MicroStrategy (NASDAQ:MSTR) technology company has just announced that it had bought 650 million dollars in bitcoin and invested more than 1 billion dollars in 2020. This growing demand combined with limited provision will continue to drive bitcoin prices up.

I therefore assume that cryptocurrency prices will go up. I'm not sure that the right way to invest in this trend is for Bitcoin mining. Even if Marathon, Riot Blockchain and Bit Digital soar benefit in 2021, it is just time before cash flow is invested in upgrading its equipment. I don't know it gives plenty of room for long-term shareholder value.

There are also other inventories of cryptocurrencies that may have more promise. Consider companies such as NVIDIA in particular (NASDAQ:NVDA). The gaming, artificial intelligence and more items are used by the NVIDIA. However, it has powerful hardware that can also be used for Bitcoin mining. In other words, Bitcoin miners might profit from purchasing new equipment, but the company does not rely on that. And that is a better horse to wager on, I think Buffette's agreed.

Bitcoin {BTC} and Ethereum {ETH} have seen considerable price drops over the last six hours. Will this continue to be the trend or are Bitcoin {BTC} and Ethereum {ETH} bouncing from these drops to reach new highs?
Bitcoin is a digital crypto and global money system currency. I talk about technical analysis of Bitcoin(BTC), Ethereum(ETH), and crypto and how I make money trading BTC. Bitcoin allows people to send or receive money across the internet, without a third party. I talk about how to make money trading cryptocurrency/altcoins along with bitcoin news events.