Key Points
- Bitcoin mining stocks witnessed a surge of over 5% in the pre-market session.
- The crypto fear and greed index moved out of the fear zone, indicating improved sentiment.
Bitcoin mining stocks experienced a significant rise, exceeding 5% in the pre-market trading session. This surge was seen as the crypto fear and greed index transitioned out of the fear zone.
Mara Holdings, the mining giant with the highest market cap, saw its share price increase by nearly 6%, reaching a peak of $16.7. Riot Platforms and Argo Blockchain also saw their stocks rise by 5.3% and 5% respectively. Other firms in the sector, including CleanSpark, TeraWulf, and Core Scientific, also experienced similar price movements.
Improved Sentiment in Crypto Industry
The sentiment in the cryptocurrency industry has shown signs of improvement. The crypto fear and greed index, a popular indicator, rose to a neutral level of 44, marking its highest point in almost two weeks.
Most cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), were in the green. Bitcoin (BTC) surged to over $63,000, while Ethereum (ETH) reached $2,500. Both these cryptocurrencies have seen an increase of over 8% and 4% respectively in the past week.
Impact of Federal Reserve’s Decision
This positive price action coincided with the Federal Reserve’s decision to cut interest rates by 50 bps. The central bank also hinted at further cuts, especially if weak job numbers persist in the U.S. Other central banks worldwide have also begun to reduce rates, marking a new phase for global central banks.
However, it is premature to predict if the gains in Bitcoin mining stocks will be sustained. The future price action will largely depend on how Bitcoin trades in the upcoming months.
Despite the uncertainty, Bitcoin has managed to avoid forming a death cross chart pattern. Instead, it has moved above the 200-day and 50-day moving averages, which is a positive sign. Bitcoin is also nearing the upper side of the descending channel, indicating potential bullishness for mining stocks.
