Marathon Digital overtakes Tesla and Apple, Bitcoin mining action rises on Wall Street

 

Marathon Digital Holdings (MARA) became the most traded US stock of the day yesterday with an impressive $327 million. More than 105 million shares of the bitcoin mining company changed hands in 24 hours, surpassing heavyweights like Tesla, Apple and Amazon.

Bitcoin mining shares rise on Wall Street

Bitcoin-powered Marathon Digital creates surprise on Wall Street

As the fateful filing date of the first Spot Bitcoin ETF in the United States approaches, set for January 2023, activity around Bitcoin miners is gaining momentum. In addition to Marathon Digital, its competitor Riot Platforms also appeared in the top 10 most traded stocks yesterday with 40 million traded shares.

This enthusiasm reflects very high market expectations for the positive impact of the Spot Bitcoin ETF. Indeed, its approval could pave the way for a massive influx of institutional capital into the crypto ecosystem, directly benefiting mining players like Marathon or Riot.

But it is not the only catalyst. Another major event that the sector is waiting for is the Bitcoin halving, scheduled for April 2023. This technical adjustment, which cuts the reward for miners in half every four years, generally causes the price to spike.

In anticipation of this appreciation, miners therefore increase their investments. Riot Platforms, for example, just acquired $291 million worth of additional hardware. Marathon Digital announced that it paid 179 million for two mining centers, bringing its mining capacity to almost a billion dollars.

Bitcoin Mining, Marathon Digital shares were the most traded in the last 24 hours.
Marathon Digital shares were the most traded in the last 24 hours. Source: Yahoo Finance

Investors are diving back into crypto stocks

Based on these promising prospects, Bitcoin-related events have seen very positive momentum since the beginning of the year. Marathon Digital and Riot Platforms saw gains of 767% and 452%, respectively. The same observation for exchange platforms like Coinbase, whose price increased by 450% during the same period.

After a dark year marked by the FTX implosion, this spectacular rebound demonstrates investors’ newfound confidence in the sector’s future. In evidence that the tide has turned, more than $6 billion in short positions in crypto-related stocks have been liquidated since the start of the year.

The sudden excitement surrounding Marathon Digital, which became the most traded stock on Wall Street yesterday, perfectly symbolizes this fierce appetite of investors for the leaders of the crypto sector rising from the ashes.

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Fenelon L. avatar

Fenelon L.

I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.

DISCLAIMER OF LIABILITY

The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.

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