Should You Buy the Dip on Bitcoin Mining Stocks?
After posting stellar triple-digit returns in 2023, Bitcoin (CRYPTO: BTC) mining stocks are down across the board in early 2024. For example, Marathon Digital Holdings (NASDAQ: MARA) is down 32%, and Riot Platforms (NASDAQ: RIOT) is down 35%. Those sharply negative returns are all the more striking, given all the hype around Bitcoin and the new spot Bitcoin exchange-traded funds (ETFs).
On one hand, this could be a fantastic opportunity to buy the dip in Bitcoin mining stocks. On the other hand, there is likely a fundamental change in market outlook that's causing this sharp correction to the downside. Let's take a closer look.
Now that the Bitcoin ETF approval drama is over, the market is starting to wake up to the potential impact of the next Bitcoin halving, scheduled for April 2024. A Bitcoin halving occurs only once every four years and, as a result, is highly anticipated by the market. In three previous halving cycles, the price of Bitcoin has skyrocketed, and many investors are expecting the same pattern this time around.
Source Fool.com
