Investors may want to keep an eye on oversold Bitcoin mining stocks.
Especially with Bitcoin bouncing back from excessively oversold conditions.
Analysts at JP Morgan are saying that outflows from Grayscale’s covered spot Bitcoin ETF is largely behind us. “This would imply that most of the downward pressure on bitcoin from that channel should be largely behind us,” the analysts added, as quoted by Forbes.com.
Two, there’s speculation Bitcoin could surge even higher. All in hopes the Hong Kong Securities and Futures Commission (SFC) could also approve a potential Bitcoin ETF shortly. Three, Bitcoin is pushing higher on the “possibility of another rate pause at this week’s Federal Open Market Committee meeting,” as noted by TheBlock.io.
That’s all fueling upside in mining stocks, such as Marathon Digital Holdings (MARA), Riot Platforms (RIOT), and Bit Digital (BTBT).