So, you've got these Bitcoin mining stocks like Marathon Digital ($MARA), Riot Platforms ($RIOT), and Cipher Mining ($CIFR), right? Well, they've been having a real rough time lately. Even though Bitcoin itself hasn't been doing too bad, these stocks are getting a beatdown. Marathon Digital, for example, took a nosedive down to $8 a share, which is like going back in time to April.
Normally, these mining stocks go up and down with Bitcoin, but lately, it's like they're doing their own thing, and it's not a good thing. People in the finance world are freaking out, and there's this thing called the CNN Money fear and greed index, and it's hit rock bottom at 25. And just to add to the fun, the US dollar is flexing its muscles.
Even the big shots like the iShares 20+ Treasury ETF and popular ETFs like Invesco QQQ and SPDR S&P 500 ETF took a punch in the gut, dropping more than 7% from their peak this year. And the Russell 2000, which usually does well, is now in the “correction” zone. It's like a plot twist because Bitcoin mining stocks were the stars of the Russell 2000 earlier this year.
So, what's got these mining stocks all shook up? Well, there's a bunch of stuff making investors twitchy. The Federal Reserve is talking about jacking up interest rates again, which would make it a pain in the rear to borrow money. Then there's this inflation thing – prices going up, and in August, consumer prices shot up by 3.7%, and gas prices are doing the cha-cha, so we might hit 4% soon. And to top it off, UAW workers are on strike, which could mean cars costing an arm and a leg.
But the granddaddy of all worries for these Bitcoin mining stocks is whether they can rake in the cash this quarter. Even though Bitcoin is hanging in there above $26,000, it's still not as high as the glory days when it went over $32,000. And to make matters worse, some smarty-pants experts are saying Bitcoin is giving off vibes of more price drops, calling it a “death cross.” So, all this drama is giving investors the heebie-jeebies, and that's why these mining stocks are getting a major beatdown. Ain't that a peach?
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