Despite Bitcoin’s strong start in early 2024, crypto miner stocks have outperformed BTC since the halving, with Hut 8 and Bitfarms showing the highest returns.
Analysts at CCData wrote in a research report that the fourth Bitcoin halving has significantly changed the cryptocurrency mining landscape, with smaller miners being hit harder due to “suboptimal infrastructure and lack of economies of scale,”
As a result, private equity firms have consolidated smaller companies and integrated their infrastructure, despite recent difficulties for Bitcoin (BTC) itself. This strategic interest has led to a noticeable rise in mining stocks, analysts say, adding that Hut 8 (HUT) and Bitfarms (BITF) have achieved the highest returns of 86% and 34%. In contrast, Bitcoin has fallen 3.62% since the halving.
The research report also indicated that the price of Bitcoin remained in the range of $59,000 to $72,000 for three months after the halving. In contrast, major U.S. stock indices reached new all-time highs. This, along with a reduction in trading activity on centralized exchanges, has led some to speculate that the market may have reached the top of this cycle.
However, historical trends suggest that the halving event has “always been preceded by a period of rising prices,” lasting between 366 days (in 2014) and 548 days (in 2021) before reaching the top of the cycle, CCData notes. The analysts argue that the data and previous trends are “strong enough” to suggest that any sideways price action “is temporary,” adding that the market is likely to “break previous all-time highs again before the end of the year.”
