Bitcoin has been relatively tame lately, but mining stocks are on the rise as companies benefit from recent congestion on the network.
Bitcoin's price action has been relatively tame lately, but bitcoin-related stocks are on the rise this week as miners benefit from recent congestion on the network. That congestion was driven primarily by sudden activity in NFT-like assets, or "Ordinals," on the Bitcoin blockchain. As a result of the congestion, Binance over the weekend briefly paused user withdrawals twice, which helped push the price of bitcoin down 7% over two days.
"The transaction fees that are paid to miners have grown and that's healthy for the long-term viability of security of Bitcoin." On Wednesday, publicly traded bitcoin miners Riot Platform and Marathon Digital gained 6% and 9%, respectively. Hut 8 and Canaan rose about 2% each. "There's a whole host of public companies who have emerged in the mining space over the past two years," he added. "They are all beneficiaries from the growth and transaction fees.
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