Spot Bitcoin ETFs and Bitcoin Miners Gains Continued This Week?

We have the first weekend after the halving, and the block reward halving forces miners to reassess their operational strategies to maintain profitability in an environment of reduced block rewards.

Those who choose to continue with energy-intensive mining practices face the risk of reduced profits, necessitating operational adjustments. In order for miners to continue their survival, there are option presented to either expand their operations or stop the operations entirely. But if we look at the demand for bitcoin especially with the introduction of Spot Bitcoin ETFs, we would see that there have been an increase since last week (Thursday/Friday - 19 April 2024).

At time of this writing, Bitcoin traded above $65,000 which is much higher than the price it traded at around $64,700 on Friday morning. There might be no immediate rally but we do see a healthy upside move for Bitcoin after its halving event.

What would be important is we need to understand what have helped Bitcoin to its highs in recent years, the story is different this time, with Spot Bitcoin ETFs actively traded.

On 14 March 2024, Bitcoin hit an all-time high $73,798, surpassing its prior peak of $68,990 set in November 2021. Bitcoin has jumped about 50% so far this year, with most of the gains compounded in February and March.

I personally think that we might want to observe and monitor if there is surge coming our way in coming weeks or months.

Spot bitcoin ETFs swung around 2% higher early Friday after rebounding back above their 50-day lines Thursday. We saw Bitcoin ETFs shares fell for four trading days before we saw recovery to a jump, this is catalysed by 5 consecutive days of daily outflows.

If we look at the outflows between 12 April and 18 April, there was $319.1 million in outflows from Bitcoin ETF funds. But despite these recent outflows, we saw that spot bitcoin ETFs recorded $12.27 billion in inflows since the launch on 11 Jan.

On early Friday, Riot Platforms (RIOT) led bitcoin miners early Friday with a 3.9% gain. CleanSpark (CLSK) jumped 2.3% after advancing 3.9% premarket. Marathon Digital (MARA) rose 1.3%. MARA stock climbed 2.8% before the opening bell.

But Coinbase need the traders and investors sentiment to come back to buying, then we could see MACD moving higher, this would benefit the stock price. The transaction fees that have increased post halving should have contributed to Coinbase’s revenue.

I would monitor how Coinbase revenue would come out from the increase in transaction fees as more investors start to reallocate their crypto assets.

If we were to look closely on how market perceive the demand for Bitcoin despite the downturn we experienced last week, the inflows coming from Spot Bitcoin ETFs have been encouraging.

I personally would think that we could also look at the miner crypto stocks like Marathon Digital. Their price seem to be priced in the halving event, hence, we might see how Marathon is going to benefit from their operational strategy they have prepared as the rewards of mining Bitcoin have halved.

MARA have been suffered from a sell-off since mid of March, but something I would be watching closely is the release of their operation update by end of April, we should be able to see how the efficiency of MARA mining farm would perform.

MACD is beginning to form a crossover, and we need to see further decrease of selling sentiment and go into buying sentiment, then MARA should have a good upside this week.

As there are winners and losers post halving event, those who has prepared themselves should have less worries and can worked towards to find the benefit and opportunities.

I foresee the inflows from Spot Bitcoin ETFs should stay strong, this should help to contribute to stronger Bitcoin price, and Coinbase and MARA in my personal opinions should be a winner in their own class.

Appreciate if you could share your thoughts in the comment section whether you think spot bitcoin etfs inflows should helped the miner stocks and platform like Coinbase?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.