Bitcoin’s surge to a record $73,000 has grabbed headlines, but HIVE Digital Technologies Ltd HIVE and Bit Digital Inc BTBT, two crypto mining giants, are facing a troubling sign: the Death Cross.
Related: Bitcoin Tops $73,000; Toncoin, THORChain Among Top Gainers
HIVE Digital: Adapting Amid Challenges
Despite hurdles such as Intel’s ASIC chip discontinuation, HIVE remains innovative, focusing on energy efficiency and AI to pivot its business.
The company’s stock has seen fluctuations, with a 15.87% rise in the past year but a 30.68% drop year-to-date.
CEO Aydin Kilic announced robust earnings for the third quarter, with revenue hitting $30.1 million, driven by mining 830 Bitcoin. The Gross Operating Margin stood at an impressive 38%, showcasing profitability.
However, a technical signal suggests caution when considering Hive stock.
The 50-day simple moving average (SMA) (orange line) crossed under the 200-day SMA (blue line) triggering a Death Cross.
On Wall Street, traders often consider the Death Cross as a bearish signal indicating a potential downward trend or significant sell-off in the asset’s price. Investors and analysts widely regard it as a warning sign.
Bit Digital: Navigating Volatility
Bit Digital faced challenges amidst Bitcoin’s surge, with its stock price rising 91.45% in the past year but declining 47.04% year-to-date.
In February 2024, the company produced 128.7 BTC, slightly down from the previous month. It actively engaged in digital asset staking and mining, with around 12,784 ETH staked as of Feb. 29, 2024.
Bit Digital stock’s moving averages triggered a Death Cross, spelling caution for investors considering Bit Digital stock amid the Bitcoin rally.
Death Cross Validates Peter Schiff’s Concerns
On March 5, economist Peter Schiff highlighted concerns about the underperformance of Bitcoin mining stocks compared to Bitcoin’s rally.
The Death Cross seen in these two crypto mining stocks validates Schiff’s concerns.
The divergence raises questions about market corrections and Bitcoin’s sustainability. Amidst this, stakeholders in the crypto mining sector must remain adaptive, seeking growth amidst market dynamics.
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