Crypto stocks, where are you now? part 2

It has been almost six months since my last blog post about publicly traded cryptocurrency mining company stocks. At the time, all of these stocks were experiencing 90% drops from their peaks, and the outlook was bleak. You can read the full post here.

In this post, I will look at where these stocks stand now, almost half a year later, while keeping the list the same at HIVE, HUT, MARA, RIOT, and Bitcoin, for comparison purposes. July 2nd was when I published part 1, so the charts will have a month before that included just to give a better idea of where we left off.

Just when you think more of the same was ahead…

What’s funny is that the blog post's date marked a short-term turnaround in the space. There I was, highlighting the doom and gloom and expecting much more drubbing in the near future. And, of course, the market had a surprise for me.

Let’s look at each company’s chart and start with HIVE (blue arrow marks when part 1 was published):

HIVE ran 100%+ up since I published that blog post. Of course, it is since down 40%, but the point was definitely one where the selling was overdone to the extreme, and a short-term relief followed.

Let’s look now at HUT

Equally ridiculous, +100% run from the time of the publish. The party is over though for now, it’s down 35% since July 2nd.

MARA paints a very similar picture:

It has an even more impressive short-term rise, +230%, eventually falling back down and now down 30% since the post.

Lastly, RIOT, and again, the same picture:

+100% rise, and now down only around 10% since that post was written in July 2nd.

Bitcoin itself has not had the rise that the stocks did and has stayed relatively flat from that point forward:

It had a modest 10% gain and since then has been down 20%.

Nothing but surprises

When I sat down to write part two, I did not expect to see such a huge short-term jump that the stocks had experienced.

Here we are, at a major bear market, with bitcoin dropping, and yet these companies saw a minimum 100% bump! That’s the short-term gyrations for you. If you went short at that time, it would not have been pretty.

The second surprise is how the stocks examined seemingly have separated from bitcoin. They were highly correlated during the meteoric rise. But since the bitcoin collapsed, the ups and downs of the tickers seemed to be more dictated by the stock market indexes. Here is the S&P500 during the same period of time:

It looks like we had a bear market rally, and the crypto stocks went along for a ride. This is just pure speculation, but assuming they were highly shorted due to bitcoin collapsing, and shorts getting wrecked could have been the reason for the 100–200% gains we saw in them during this time.

Funny enough S&P looks to have had ups and downs but overall went nowhere during this time! Very interesting how the day to day volatility gives an impression of S&P being down a lot since the summer, but it really has not moved anywhere.

What’s next

As usual, no one really knows. Since I reached the point of writing an article about how wrecked the bitcoin miners are, maybe we are due for another rise and short-term run-up. I wouldn’t be shocked to see it, but fully expect more bear market drops in the near future.