Key Points
- Bitcoin (BTC) mining stocks have retreated as BTC experiences a pullback.
- Increased Bitcoin deposit activity and government sell-offs contribute to a bearish market outlook.
Bitcoin mining stocks, such as Riot Platforms, Marathon Digital, and CleanSpark, have experienced a decline in the pre-market session due to the pullback of Bitcoin. Stocks such as RIOT, MARA, and CLSK fell by more than 2%, while other crypto-related stocks like MicroStrategy and Coinbase experienced a 1.5% drop.
Bitcoin’s Downtrend Continues
Bitcoin-linked stocks are experiencing a pullback as Bitcoin’s downtrend continues. After reaching a peak of $63,750 on Monday, Bitcoin is now hovering around $60,000, and it remains uncertain if it will recover.
Bitcoin is dangerously close to the crucial support level of $58,273, which is the 200-day Exponential Moving Average (EMA). The next support level is $56,426, representing its lowest level in May.
If Bitcoin falls below this price, it could indicate that the bears have taken control, potentially pushing Bitcoin’s price down to $50,000 or lower. This decline comes after a whale deposited nearly 2,000 Bitcoins into Binance in two separate transactions.
Bitcoin Mining Companies Face Risk
If the Bitcoin sell-off continues, Bitcoin mining companies, such as Marathon, CleanSpark, and Riot Platforms, may face risks. These companies have historically shown a close correlation with Bitcoin’s performance.
This drop is happening a few months after the halving event, which reduced the amount of Bitcoins that miners receive. To compensate for this drop, many of these companies have added to their mining equipment. For instance, CleanSpark achieved a 20 EH/s hash rate, which helped it mine 445 coins in June after mining 417 coins in the previous month.
Marathon Digital mined 590 coins in June, a 40% drop from the same month in 2023 and flat from May. Riot Platforms, on the other hand, has focused on acquiring Bitfarms, a company that mined 189 coins in June.
