Keep an eye on Bitcoin mining stocks.
Historically, most push higher prior to and after Bitcoin halving events.
Look at Marathon Digital (MARA), for example. With the May 11, 2020 halving, MARA ran to 72 cents ahead of time. From there, it ran to $44.35. With the 2016 halving event on July 9, MARA traded at $30.77 ahead of it. Heading into the halving, it was up to $45. After, it would hit $48.48 a share. With the 2012 event on Nov. 12, MARA traded at about $104 and would drop to a low of about $38.48. It would recover to a high of $116 by late 2014, though.
Even analysts at Bernstein just said to buy BTC mining stocks ahead of the event.
“Historically, bitcoin price breakout has always followed the halving event and sometimes a few months after halving,” said the firm, as quoted by CoinDesk.com. “The broker said it expects bitcoin’s bullish trajectory to resume after the halving once the mining hashrates have adjusted to the lower rewards and ETF inflows resume.”
JPMorgan also noted “With the bitcoin halving on the horizon, we expect heightened volatility and trading volume in both bitcoin and mining stocks. That said, we think recent weakness offers an attractive entry point, and are especially bullish on RIOT and IREN, which we think offer attractive relative valuations.”
Even better, most of the miners are currently oversold.
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