Crypto Stocks Surge as Bitcoin Breaks $90K, Miners Lead the Charge
Bitcoin’s (BTC) impressive climb above the $90,000 threshold has propelled a powerful rally across the crypto sector, with mining stocks seeing the most substantial gains. The surge in BTC’s price has triggered a broader market rally, especially in crypto-related equities, which have been struggling for some time due to market headwinds.
Shares of major crypto companies, including Strategy (MSTR), which holds significant BTC reserves, and the leading exchange Coinbase (COIN), rose 8% to 9% during the session. However, it was the miners that really stood out, outperforming BTC’s 5% rise with impressive double-digit gains. Bitdeer Technologies (BTDR) surged around 20%, while Bitfarms (BITF), CleanSpark (CLSK), Cipher Mining (CIFR), Riot Platforms (RIOT), and Marathon Digital (MARA) all recorded gains ranging between 10% and 15%.
In tandem, the broader stock market rebounded from recent losses, with the Nasdaq gaining 2% and the S&P 500 up 1.7%, bolstered by optimism surrounding potential de-escalation of U.S.-China tariff tensions, which have previously weighed on global investor sentiment.
Miners Bounce Back After Prolonged Slump
Crypto miners, which have faced months of underperformance due to rising operational costs, narrowing profit margins, and the ongoing tariff situation, are finally experiencing a much-needed bounce. The recent bitcoin rally has provided miners with a much-needed lifeline, allowing them to catch up after trading at multi-month lows.
The Trump administration’s tariff policy, which has raised the cost of importing mining equipment like ASICs, has especially hurt U.S.-based mining operations. This policy is expected to slow or even halt growth for many domestic miners, according to industry experts.
Taras Kulyk, CEO of mining hardware firm Synteq Digital, commented, “The tariffs will materially impact future capital expenditure in the U.S., pushing miners to explore more cost-effective regions like Canada, which could become a key beneficiary of the global tariff regime.”
Bitdeer’s Strategic Shift and Tether’s Investment
One of the standout players in the current market shift is Bitdeer Technologies. The company has pivoted from merely selling mining rigs to developing its own self-mining operations. This move has bolstered its position in the market, especially as demand for self-mining rigs remains high. Additionally, Tether, a stablecoin giant, has made a significant investment in Bitdeer, purchasing $32 million in shares, further boosting the company’s market position.
Despite Bitdeer’s growth, many other miners are still recovering from the extended market downturn. With BTC now moving past key resistance levels, mining stocks are being viewed as leveraged plays on bitcoin’s continued strength, making them appealing to investors looking for upside in the sector.
Ongoing Risks from Tariffs and Market Challenges
Even with the rally in mining stocks today, the U.S. tariff policy remains a significant risk for miners. As the crypto sector enters earnings season, investors are keenly awaiting commentary from CEOs on how these tariffs and other macroeconomic factors are impacting their strategies and outlook.
Tesla, which holds a notable amount of bitcoin in its balance sheet, is set to report its earnings on Tuesday. Investors will be watching closely for any insights from Elon Musk regarding the potential impact of the ongoing U.S.-China trade tensions on Tesla’s future growth, especially as the company has substantial exposure to the crypto market.
As bitcoin pushes higher, miners are likely to continue benefiting from the rally, though the tariff situation and broader economic challenges remain critical factors to monitor as they evolve in the coming months.
