📊 Crypto Stock Deepdive

Louis Sykes
November 10, 2024

Bitcoin is gearing up for its next major bull run — and while the spotlight is often on BTC, there are plenty of other opportunities to capitalize on this market shift. Beyond Bitcoin itself, many investors are turning their attention to the broader crypto ecosystem, and especially to Bitcoin miners, which tend to outperform during bullish cycles.

In recent weeks, we've been diving into a number of altcoins that offer outsized returns, but today, I want to focus on a different angle: the growing opportunities in Bitcoin mining stocks. These stocks have historically done well when Bitcoin rallies, and as we start to see signs of the next bull market, I believe miners could play a crucial role in boosting returns.

A key metric to watch is the ratio between Valkyrie’s Bitcoin Miners ETF ($WGMI) and Bitcoin ($BTC). When this ratio rises, it signals that Bitcoin mining stocks are outpacing Bitcoin itself — a trend that often precedes a broader surge in mining stock performance.

Over the past two years, miners have lagged behind Bitcoin, but recent movements in this ratio suggest we may be on the cusp of a reversal. If history holds, Bitcoin miners could once again offer outsized returns as we head into the next bull market.

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In today’s post, I’ll outline how I’m positioning myself to take advantage of this trend, including the individual miners and ETFs I’m watching for long positions. Whether you prefer the broad exposure of a mining ETF or want to go all-in on specific stocks, there are clear opportunities to gain from this sector’s growth.

Let’s dive in and take a closer look at the best ways to play this theme.

 

 

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