Another crypto boom? That’s what some people think is going on right now, as Bitcoin (BTC-USD) manages to not only clear $50,000 per coin, but stay there. And that, in turn, is prompting gains among several Bitcoin stocks. Not all of them, however, which is something of a surprise given the unexpected performance of Bitcoin in the field. Riot Platforms (NASDAQ:RIOT) is up just over 2% in Friday morning’s trading, and Marathon Digital (NASDAQ:MARA) jumped up over 3.5%. Coinbase (NASDAQ:COIN) is having a field day, blasting up over 15%. However, both Microstrategy (NASDAQ:MSTR) and HIVE Blockchain (NASDAQ:HIVE) are down fractionally in the session.
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The obvious culprit for the surge in Bitcoin pricing of late is the upcoming halving, in which the amount of Bitcoin that can be derived from a block of code is poised to decline. That will make finding new Bitcoin harder, and thus, further limit the amount of Bitcoin available in the system for everybody else. Further exacerbating the situation is the sudden rise in demand for Bitcoin, thanks to the arrival of newly-minted Bitcoin exchange-traded funds (ETFs) that are attracting more attention to Bitcoin and, accordingly, cryptocurrency in general. More buyers for fewer coins means a rise in price, which we’re seeing now. How far up it can go from here, though, is anyone’s guess.
The Future Soon
Indeed, where does Bitcoin go from here? Bitcoin has been enjoying a lot of extra liquidity of late as more institutional buyers flood in, looking to pick up Bitcoin of their own. Between the halving to cut supply and rising buyer interest, it suggests that further gains are on tap. The uppermost predictions go anywhere from $120,000 per coin and up from there. This might even explain Microstrategy’s recent move to focus on “Bitcoin development,” especially given that Microstrategy currently holds about 1% of the circulating supply of Bitcoin in the field.
Which Bitcoin Stocks are a Good Buy Right Now?
Turning to Wall Street, the laggard in the field is MARA stock, as this Hold-rated stock offers investors a 22.63% downside risk against its average price target of $21.67. Meanwhile, the leader is HIVE stock, as this Moderate Buy with an average price target of $6.25 offers investors a 40.45% upside potential.
