Crypto Mining Stocks Rally Despite Thursday Pullback

Crypto mining stocks logged strong weekly gains, despite a pullback on Thursday, lifted by signs pointing to a supportive macroeconomic environment potentially aiding the US Federal Reserve’s anticipated soft-landing.

Shares in prominent crypto-mining firms like Riot Platforms (RIOT), Hive Digital (HIVE), Hut 8 (HUT8), MARA Holdings (MARA), and Bitfarms (BITF) climbed between 13% and 28% over a four-trading session ended Friday, predicated on an early US market close due to the Independence Day holiday weekend.

Meanwhile, the VanEck Digital Transformation ETF (DAPP), encompassing firms like Coinbase (COIN) and several miners, surged over 3.2% on Thursday, bringing its year-to-date increase to more than 20%.

Broader Market Trends Mirror Bitcoin Miners

The robust performance of crypto-mining equities paralleled broader market strength, with the S&P 500 Index and Nasdaq Composite reaching new all-time highs during a holiday-shortened trading session on Thursday.

The stimulus included gains following the release of strong US jobs data. The Bureau of Labor Statistics reported June nonfarm payrolls expansion significantly surpassed expectations, with the addition of 147,000 jobs and the national unemployment rate dipping to 4.1% (from 4.3% a month prior).

“While the positive jobs figures likely preclude immediate Fed rate cuts this summer, the broader macro picture remains conducive to policy easing,” stated Matt Mena, crypto research strategist at 21Shares.

Analysts highlight the current economic climate, characterized by potential lower interest rates, a lessening of risk aversion stemming from improving macro data, and pending regulatory clarity via proposed bills like the Market Structure Improvement for Virtual Currencies (MarketV) and GENIUS Act, as factors aligning favorably for digital assets and, by extension, crypto-mining stocks.

Bullish Outlook for Bitcoin Miners Endures

Notably, Bitcoin’s price reached a session high (though later pulled back) near $110,541, contributing positively to miner sentiment despite Thursday’s profit-taking in mining equities.

This rally underscores investor optimism focused on the crypto-mining sector’s role in supporting the burgeoning blockchain economy.

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