Making a fortune in silence! The average return rate of Bitcoin mining companies' stocks has exceeded 300% this year

Original article: Crypto Briefing, original author: Nivesh Rustgi

Translator: Odaily Planet Daily Nian Yin Sitang

summary:

- Bitcoin mining company stocks have an average return of 327% year-to-date.

- As BTC hits new all-time highs, these stocks’ gains are slowly entering the “caution region.”

- In addition, Google searches for "Bitcoin" are approaching those for "Tesla Inc."

The top two Bitcoin mining companies in the United States, RIOT and Marathon, have seen their share prices rise by 492.6% and 387% respectively in the past 12 months, outperforming even Bitcoin (170%) and Ethereum (368%).

Bitcoin mining stocks need to be cautious

The rise in bitcoin mining stocks this year has been comparable to the surge in gold mining company shares in the 1970s and early 2000s.

Moreover, a similar trend was seen three years ago.

When the price of Bitcoin soared in 2017, so did the share prices of cryptocurrency-related companies. At the peak of the bubble, blockchain-related stocks had a 60-day rolling average return of 165%, with a median gain of 126%.

However, the fact that the price gains of the past few months may be fleeting is also a reason to be cautious. Bitcoin’s rise in 2017 turned out to be a short-lived bubble, and this year’s rise could eventually turn to a fall, with a similar effect on crypto stocks.

Tesla as a benchmark

Bitcoin mining company stocks can also rival the performance of some electric vehicle (EV) stocks.

Alternative asset manager Upslope Capital Management reported a similar uptrend in its EV category, with a 60-day rolling average return and median gain of 143% and 162%, respectively.

EV company stock 60-day returns, source: Twitter

The average 60-day gain of Bitcoin mining stocks is 114.2%, and the median is 125.2%. Therefore, these stocks are also slowly entering the "danger zone".

More specifically, hardware manufacturing companies and institutional mining support companies like Argo Blockchain PLC have an average 60-day return of 74.6%.

Shares of U.S. and Canadian bitcoin mining companies rose.

Google searches reveal investor interest

Additionally, Google search data for “Bitcoin” shows that investor interest in Bitcoin is well below its peak in 2017.

Google search volume for “Bitcoin” (blue) and “Tesla Inc.” (red) Source: Google Trends

On the other hand, “Tesla Inc.” has seen a clear spike in searches throughout the year. “Bitcoin” search trends are approaching their 2019 peak and may slightly surpass interest in “Tesla Inc.”

Investor interest in Bitcoin is slowly heating up, with prices expected to surge as they hit new all-time highs. Only time will tell what this means for the mining companies involved.