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Author: Admin | 2025-04-28
When Bitcoin rises, these stocks tend to go with it. What happened The value of Bitcoin (BTC -1.86%) rose sharply over the weekend, and that led to a jump in crypto miners and related suppliers on Monday. Early in trading, Bitfarms (BITF) jumped as much as 15%, Hut 8 Mining (HUT) rose 14.4%, Marathon Digital Holdings (MARA 0.28%) popped 14%, and Riot Platforms (RIOT -4.08%) surged 17.4%. Some of those gains were given back quickly, though, and at 1:15 p.m. ET shares were up 2.8%, 2.6%, 3.1%, and 7.8% respectively. So what Bitcoin miners and companies that make chips and products for mining are a leveraged play on the underlying cryptocurrency, and we're seeing that play out today. Bitcoin is up about 3.5% from market close on Friday to the time of writing, yet these stocks jumped significantly more than that. The leveraged nature comes from their underlying operations. The cost of mining or making chips is relatively fixed for these companies, with revenue being variable depending on the value of Bitcoin. That leads to massive upside when revenue jumps, which is why we see jumps like today's. What's interesting about the move in Bitcoin recently is the fact that it happened after the U.S. Congress agreed to a deal that would avert a government shutdown. Bitcoin is often seen as a hedge against fiat currencies or big governments, but in reality, events like a shutdown or debt ceiling breach have been negatives for Bitcoin, and the cryptocurrency's value has risen when agreements are reached. In related news, we are seeing a slow opening of the crypto trading market for exchange-traded funds (ETFs). The SEC has begun allowing some Ethereum ETFs, which could lead to more crypto products from Bitcoin to smaller cryptocurrencies. Like it or not, the market is moving toward both more regulatory clarity and more available products for cryptocurrency investors and traders. Now what It's not clear that the bounce in Bitcoin's value over the weekend will last, because it's very speculative. The cryptocurrency has already given back a portion of its gains and is currently trading
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