MARA Holdings' (MARA) Buy rating is facing a serious test.

Bitcoin's latest jump above $94,000 hasn't cleared the path for crypto miners. Instead, MARA's stock forecast is under pressure.

As Bitcoin continues to hover above the $94,000 mark, and analysts adjust their stances on MARA Holdings (NASDAQ:MARA) are coming into focus.

What Happened: JP Morgan downgraded MARA to Neutral and trimmed its price target on Monday. The bank began coverage of the stock last year and set a $23 price goal for the shares. Now, however, they're trading at $14.75.

The bank noted that while Bitcoin has recovered and now trades above the $94,000 level, the cryptocurrency could still see a sharp pullback, which would negatively impact the miners' profitability.

"We prefer to remain on the sidelines given the strong correlation of the stock to Bitcoin, which could result in a sharp reversal of the stock if/when Bitcoin corrects," the analysts wrote.

However, HC Wainwright & Co. remains bullish on MARA stock. The firm reaffirmed its Buy rating and $28 price target on Tuesday.

"We believe that MARA is well-positioned to benefit from the continued growth of the blockchain industry," the analysts wrote.

"We are also impressed by MARA's management team, which has a proven track record of success in navigating challenging market conditions."

The stock is down 0.9% on Tuesday morning, trading at $18.07.

Why It's Important: Bitcoin prices slipped on Tuesday morning as the cryptocurrency faced resistance at the $94,000 level. The crypto is still up more than 100% year-to-date and has seen volatility throughout 2023.

Bitcoin prices slipped as over $300 million in short liquidations were reported in the past 24 hours and major ETF inflows continue to pour into the cryptocurrency, according to CoinGlass.

Rosenblatt began coverage of MARA with a Buy rating and $19 price target. The firm said it's impressed by MARA's investments in AI data centers, which will help to diversify revenue streams and reduce reliance on Bitcoin mining.

"We believe that MARA is a unique and valuable investment opportunity, and we are recommending investors to buy the stock," the analysts wrote.

Bank of America has a Neutral rating on the stock with a $16 price target.

"We see limited downside to the stock given the low valuation and potential for upside if Bitcoin continues to rally," the analysts wrote.

However, Barclays downgraded MARA to Equal-Weight and slashed its price target from $27 to $14.

"We downgrade MARA to EW from O/W as we see the stock fully valued at current levels and believe the stock could come under pressure if/when Bitcoin corrects," the analysts wrote.

"While we acknowledge the stock's strong correlation to Bitcoin is well-documented, we believe this link to risk assets could lead to increased volatility in the stock."

Related Link: Bitcoin, Ethereum Set Sights On Key Levels As Major ETF Inflows Continue To Pour In

MARA Stock Price Action: Shares of MARA are trading at $14.75, compared to a 52-week high of $23.17 and a 52-week low of $5.17.output: MARA stock has followed Bitcoin closely throughout 2023, with gains and losses syncing up significantly. This leaves analysts divided, some seeing MARA as a leveraged bet on Bitcoin's upside and others spotting more risk than reward.

As Bitcoin soared to nearly $69,000 in late 2021, MARA stock rose to nearly $80. But when Bitcoin fell below the $20,000 level in early 2022, MARA stock dropped to lows of $5.17.

This is the double-edged sword of crypto mining stocks—they offer outsized gains when Bitcoin rallies, but the same swings can hit just as hard on the way down.

This year, Bitcoin has rebounded to the $94,000 range, and MARA stock has followed, rising from around $12 to over $19 in recent weeks. However, those moves haven't been smooth, and Bitcoin's volatility continues to drag MARA along for the ride.

For example, when Bitcoin dipped below the $60,000 level earlier this year, MARA stock slid nearly 40% from its local high.

Analysts are well-aware of this pattern, and the correlation between MARA and Bitcoin remains one of the strongest in the market. Any shift in crypto sentiment—whether driven by ETF inflows, regulatory headlines, or global risk factors—affects MARA quickly.

This link is crucial for investors to understand. MARA isn't just a mining company; it's a direct reflection of Bitcoin's mood swings.

Is MARA Stock A Good Buy