These are the stocks making hay from the Bitcoin price upturn

A woman works on her desktop and tablet, having a win with crypto.

A woman works on her desktop and tablet, having a win with crypto.The Bitcoin (CRYPTO: BTC) price is up 3% over the past 24 hours, currently trading for US$22,024 (AU$32,123).

The latest gains put the world’s top token by market cap up 10% since this time last week and at the highest level in a month.

Though, as you’d expect with cryptos, the gains haven’t come in any kind of straight line. The Bitcoin price traded as low as US$19,000 and as high as US$22,795 over the week, according to data from CoinMarketCap.

While the past week’s gains will certainly be welcomed by crypto investors, a handful of companies have ridden the token’s uptick to far greater heights.

Making hay from the Bitcoin price upturn

Not unlike gold miners, Bitcoin miners are leveraged to the price of the virtual tokens they earn as rewards for securing the blockchain.

And with retail investors closely following the sector, the miners have been subject to some outsized price swings as the Bitcoin price rises and falls.

Take Riot Blockchain Inc (NASDAQ: RIOT), for example. The Bitcoin mining company gained 12% in yesterday’s trade (overnight Aussie time) and is now up 30% since this time last week.

Fellow crypto miner Marathon Digital Holdings Inc (NASDAQ: MARA) had an even better day on Monday, closing up 21%. That puts the Marathon Digital share price up 29% since last Tuesday.

You’ll find a similar story playing out with most of the big crypto miners.

Mind you, though, that despite the past week’s upturn, the Bitcoin price remains down 54% since 1 January.

As for the miners, the Riot Blockchain share price is down 73% year-to-date, while the Marathon Digital share price is down 70%.

Resilient and perhaps signs of early decoupling?

Following last week’s release of sizzling hot inflation figures out of the United States, many analysts had forecast a tough few days for the Bitcoin price.

We know now that didn’t transpire.

Commenting on the token’s resilience in the wake of the inflation data, GlobalBlock analyst Marcus Sotiriou said (courtesy of Bloomberg), “When the market starts reacting positively to negative news, this is a signal that a local bottom could be in for now, as fear may have caused the news to be priced in.”

eToro’s market analyst and crypto expert Simon Peters added that the relative strength of the Bitcoin price and most top cryptos over the past week could be the vanguard of a potential decoupling from equity market moves.

“The events of the past few days have shown crypto assets moving above the gain lines of equities, with major indices relatively flat,” Peters said. “While not necessarily showing a decoupling of recent performance mirroring, divergence over a longer time frame could mark a significant shift.”

The post These are the stocks making hay from the Bitcoin price upturn appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia

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