Despite Bitcoin’s strong performance at the beginning of 2024, crypto mining stocks have outperformed BTC following the halving. Hut 8 and Bitfarms have seen the highest returns, according to analysts at CCData.
The fourth Bitcoin halving event has brought significant changes to the crypto mining landscape, particularly impacting smaller mining firms due to suboptimal infrastructure and the lack of economies of scale. Private equity firms have stepped in to consolidate smaller firms and integrate their infrastructure, despite recent challenges for Bitcoin itself. This strategic move has resulted in notable performance in mining stocks, with Hut 8 and Bitfarms achieving returns of 86% and 34% respectively, while Bitcoin has seen a decrease of 3.62% post-halving.
Bitcoin’s price has remained within a range of $59,000 to $72,000 in the three months following the halving, while major U.S. equity indices have reached new all-time highs. Some speculate that the market may have peaked in this cycle, but historical trends suggest that the halving event typically precedes a period of price expansion lasting from 366 days in 2014 to 548 days in 2021 before reaching a cycle top. CCData analysts believe that any sideways price movement is temporary and predict that the market will likely surpass previous all-time highs before the end of the year.