- Bitcoin mining shares have an average YTD return of 327%.
- The increase in these stocks is slowly entering the “caution region,” as BTC reaches new all time highs.
- Additionally, Google searches for “Bitcoin” are approaching the number of searches for “Tesla Inc.”
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Caution Ahead for Bitcoin Mining Stocks
Furthermore, a similar trend took place three years ago.
When Bitcoin prices surged in 2017, cryptocurrency stocks also surged. At the peak of the bubble, the 60-day rolling average gains on blockchain-based stocks was 165%, with a median growth of 126%.
However, the fleeting nature of rising prices in the last few months is also a reason to be cautious. Bitcoin’s 2017 rally proved to be a short-lived bubble, and this year’s Bitcoin rally could lead to a downfall with a similar effect on crypto stocks.
Tesla Inc. Provides a Benchmark
Bitcoin mining company stocks are also comparable to some electric vehicle (EV) stocks.
Upslope Capital Management, an alternative asset management firm, reported a similar uptrend in its EV stocks, with 60-day rolling averages and median gains of 143% and 162%.
Bitcoin mining stocks have 60-day average gains of 114.2% with a median of 125.2%. Those stocks are, therefore, slowly entering the “danger region” as well.
More specifically, hardware manufacturing companies and institutional mining support firms like Argo Blockchain PLC posted average 60-day trailing gains of 74.6%.
Searches Show Investor Interest