Cryptocurrencies are exploding.
Last checked, Bitcoin was up to $25,569.66. Ethereum was above $1,750. BNB was at $316. All as traders bet on a big comeback for digital currencies.
For one, according to Bankrate.com:
“As actors begin to understand the role which U.S. monetary policy, inflation, and increases in interest rates have played in the current banking sector challenges, you are likely seeing a move towards Bitcoin and other forms of crypto as a reflection of their potential value as a hedge and alternative store of value during such times,” says Gabriella Kusz, CEO, Global Digital Asset & Cryptocurrency Association, as quoted by Bankrate.com.
Two, there are some signs inflation is starting to cool off. Three, we have government efforts to stabilize the financial system after recent bank failures. In fact, “Bitcoin is getting a relief bid that seems driven, in part, by general risk-on sentiment following the depositor bailout at Silicon Valley Bank and Signature Bank,” Ben McMillan, chief investment officer with asset manager IDX, told Yahoo Finance.
If buying cryptocurrencies isn’t for you, you can always buy related stocks.
Look at MicroStrategy (MSTR), for example. The company owns over 310,000 Bitcoin at the moment. So, every time BTC rises, MSTR rises. Today, for example, MSTR is up $5.85 with BTC.
Or, you can look at oversold Bitcoin mining stocks, like Marathon Digital (MARA), which just said:
“We successfully energized nearly 19,000 Bitcoin miners across multiple facilities in February, with over 8,000 of these units consisting of S19 XPs,” said Fred Thiel, Marathon’s chairman and CEO. “During the month, we increased our hash rate to 9.5 exahashes, a 30% increase from the prior month. We also increased our average bitcoin produced per day by 10% compared to January, producing 683 Bitcoin in February.”
There’s also Riot Platforms (RIOT), which just said:
“February was another month of operational excellence for Riot, during which we produced 675 Bitcoin in the shortest month of the year, and despite one of the largest increases in mining difficulty in recent history,” said Jason Les, CEO of Riot. “We have also continued to make progress on repairs to our immersion buildings, including Building G, where we now anticipate a return to full operations by the second half of 2023. Once achieved, this will bring back 1.9 EH/s of hash rate currently offline and not included in our reported hash rate capacity.”
Or, if you want more exposure, look at a crypto ETF, like the ProShares Bitcoin Strategy ETF (BITO), which is up slightly with Bitcoin today.