These 2 Crypto Penny Stocks Are Riding High On Bitcoin's $35K Rally — With One Emerging As The Clear Winner

With the ongoing crypto bull market, fueled by Bitcoin’s BTC/USD 110% surge year-to-date, investors have their sights set on finding the next big winners among penny crypto stocks. However, choosing the right ones can be quite a challenge.

What Happened: The growing optimism surrounding the introduction of spot Bitcoin exchange-traded funds has contributed to the surge in BTC prices.

This favorable environment, along with the weakening of the dollar, has the potential to ignite a rally in higher-risk assets, including cryptocurrencies. Adding to the excitement is the historical pattern observed during previous Bitcoin halving events, which typically precede significant market uptrends.

While exposure to solid crypto projects is a wise move, investors may also consider penny crypto stocks to maximize their returns.

One such comparison worth noting is between Bit Farms BITF and Hive Blockchain HIVE. 

HIVE Blockchain Technologies Ltd. is a cryptocurrency mining company that specializes in validating transactions on blockchain networks.  Bitfarms Ltd. is another prominent player in the Bitcoin mining industry. BITF is known for its vertically integrated mining operations, which encompass not only mining activities but also on-site technical repair services, proprietary data analytics, and company-owned electrical engineering and installation services.

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Performance Analysis: BITF vs. HIVE

Looking at its performance this year,  BITF has seen its price rise from $0.87 to $1.17, marking a 33.87% increase. Meanwhile, HIVE’s price climbed from $2.72 to $3.34, reflecting a 22.79% gain.

Returns Comparison

To assess which stock offers better returns, the final value of an initial $1000 investment was calculated for both BITF and HIVE starting Jan 1, 2023. The investment in BITF would have appreciated to $1338.67, while the investment in HIVE would have reached $1227.94.

Correlation Analysis

To investigate whether BITF and HIVE often move in tandem, a linear regression analysis was performed. The coefficient of determination (R²) was determined to be 0.92, suggesting a strong correlation between the two stocks. 

Price Action: At the time of writing, BTC was trading at $34,890.85, down 0.99% in the last 24 hours, according to Benzinga Pro.

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