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Author: Nivesh Rustgi
Translator: Nian Yin Si Tang
– The average year-to-date return of Bitcoin mining company stocks is 327%.
– As BTC hits a record high, the gains of these stocks are slowly entering the “caution region”.
– In addition, Google’s search volume for “Bitcoin” is approaching “Tesla Inc.” search volume.
The top two Bitcoin mining companies in the United States, RIOT and Marathon, have gained 492.6% and 387% in their share prices in the past 12 months, respectively, surpassing Bitcoin (170%) and Ethereum (368%).
Bitcoin mining stocks need to be cautious
The rise in Bitcoin mining stocks this year is comparable to the surge in the stock prices of gold mining companies in the 1970s and early this century.
In addition, a similar trend appeared three years ago.
When Bitcoin prices soared in 2017, the stock prices of cryptocurrency-related companies also soared. At the peak of the bubble, the 60-day rolling average yield of blockchain-related stocks was 165%, with a median increase of 126%.
However, price increases in the past few months may be fleeting is also a reason for caution. Bitcoin’s rise in 2017 later proved to be a short-lived bubble, and this year’s rise in Bitcoin may eventually turn into a fall, which will have a similar impact on crypto stocks.
Use Tesla as a benchmark
Bitcoin mining company stocks can also rival the performance of some electric vehicle (EV) stocks.
Alternative asset management company Upslope Capital Management reported that its EV stocks have also seen a similar upward trend, with 60-day rolling average returns and median gains of 143% and 162%, respectively.
60-day return on EV shares, source: Twitter
The 60-day average gain of Bitcoin mining stocks was 114.2%, with a median value of 125.2%. Therefore, these stocks are slowly entering the “dangerous zone.”
More specifically, the 60-day average rate of return for hardware manufacturing companies and institutional mining support companies like Argo Blockchain PLC is 74.6%.
Shares of Bitcoin mining companies in the United States and Canada rose.
Google search reveals investor interest
In addition, the “Bitcoin” search data on Google shows that investors’ interest in Bitcoin is far below the peak level in 2017.
Source of Google search volume for “Bitcoin” (blue) and “Tesla Inc.” (red): Google Trends
On the other hand, “Tesla Inc.” has seen a significant surge in search volume throughout the year. The “Bitcoin” search trend is approaching its peak in 2019 and may slightly exceed the interest in “Tesla Inc.”.
Investor interest in Bitcoin is slowly heating up, and it is expected that the price of Bitcoin will surge when it hits a record high. Only time will tell us what this means for the relevant mining companies.