Bitcoin Soars Post-Halving; Mining Stocks Surge on Price Anticipation

Following the Bitcoin halving event, the cryptocurrency has experienced a modest uptrend, recovering to the $66,000 mark within a week. In contrast to expectations of a halving-induced surge, Bitcoin mining stocks have exhibited remarkable growth, with Riot Platforms and Marathon Digital Holdings witnessing significant increases. The influx of investors attracted by undervalued prices and the anticipation of rising Bitcoin prices have fueled this rally in mining stocks.

Bitcoin Surges Post Halving, Mining Stocks Soar as Investors Anticipate Future Price Rise

Bitcoin has experienced a notable recovery since its highly anticipated halving event, regaining the $66,000 mark within a week. This performance has defied the expectations of many investors who had anticipated a more subdued response to the halving.

Bitcoin's Post-Halving Rebound

According to CoinMarketCap, Bitcoin closed its trading at $66,819 on May 22nd, a 2.89% increase from 24 hours prior. Domestically, on Upbit, it closed at 97.19 million won, reflecting a 2.45% gain. Since the halving was implemented on May 20th at 9:09 AM, Bitcoin's price has rebounded by approximately 5%.

Despite the initial surge, the significant price spike that many investors had anticipated has not yet materialized.

Net Inflows into Bitcoin ETFs

Meanwhile, Bitcoin spot exchange-traded funds (ETFs) have witnessed renewed net inflows around the halving. Farside Investors reported that $62.2 million flowed into 11 Bitcoin spot ETFs listed on the U.S. market on May 22nd. This reversal marks a departure from the net outflows observed in the five consecutive trading days leading up to May 18th.

While GBTC is still experiencing net outflows, buying activity has been evident in FBTC and IBIT.

Mining Stocks Surge as Investors Anticipate Bitcoin Price Appreciation

The halving has particularly benefited Bitcoin mining stocks, which have witnessed a surge in prices. Riot Platforms (RIOT) led the rally, closing at $11.24 on the Nasdaq with a 23.11% gain from the previous day. Marathon Digital (MARA) also saw a significant rise of 6.36% to $17.55, while Clines Park (CLSK) closed 10.99% higher at $19.09.

The rise in mining stocks is driven by the expectation that if Bitcoin prices continue to rise, mining operations will become increasingly profitable. During the previous halving, Riot Blockchain's stock price soared 5316% from $1.2 to $65 in the six months that followed the surge in Bitcoin's value.

New Bitcoin Standard Boosts Miner Profits

The emergence of runesprotocol, a new Bitcoin standard, has further enhanced the outlook for miners. Bitcoin network-based tokens created using this technology are gaining popularity, allowing miners to collect significant network fees in addition to mining rewards as Bitcoin network usage increases.

Positive Sentiment in Bitcoin-Themed Stocks

The bullish sentiment extends beyond mining stocks to other Bitcoin-related equities. MicroStrategy (MSTR), the listed company with the largest Bitcoin holdings, saw its stock price rise by 12.77%, while Coinbase (COIN), a leading cryptocurrency exchange, gained 7.04%.

Technical Indicators Suggest Caution

Despite the positive price action, blockchain data analysis company CryptoQuant reports that the total amount of Bitcoin held by global virtual asset exchanges has decreased by 0.14% from the previous day, indicating a drop in exchange supply. The Coinbase premium, which gauges U.S. investor sentiment, remains modest at 0.046%.

The kimchi premium, reflecting buying sentiment in the Korean market, stands at 5.16%. Unsigned futures contracts, which indicate pending liquidations in the futures market, have declined by 6.5% from the previous day. However, they have increased by 5.19% compared to a week ago.

This rise in futures positions suggests that investors are taking higher risks as Bitcoin remains range-bound since its halving.