Here’s The Bitcoin Trade To Make As It Turns Positive For The Year

gold-colored Bitcoin

Photo by André François McKenzie on Unsplash

After running above $48,000 earlier this week thanks to key catalysts, Bitcoin (BITCOMP) has turned positive for the year.

One catalyst, as noted by CryptoPotato.com, is news that Do Kwon, the founder and CEO of Terraform Labs, intends to buy $10 billion worth of Bitcoin over time. A second catalyst is that as the overall markets rise, Bitcoin sentiment may be going positive. Third, institutions are getting far more bullish on cryptocurrency.

Goldman Sachs just became the first firm to trade Bitcoin over the counter, and Cowen has said it will allow institutional clients to trade Bitcoin. Even Bridgewater Associates will reportedly invest in a cryptocurrency fund sooon.

In addition, as Alexander Mamasidikov, co-founder of the mobile digital bank Mine Plex, told CNBC: “The ongoing capital splash into the digital currency is a sign that investors do not want to take a back seat in a price movement that could push bitcoin to a height not seen since November 2021.”

Experts still believe Bitcoin could challenge $100,000. Goldman Sachs says it could more than double to that number in the next five years. Even Apple co-founder Steve Wozniak has said Bitcoin could rally that high.

With a good deal of Bitcoin bulls coming back, investors can invest in Bitcoin itself, or invest in the miners that move with the price of BTC.

Look at Marathon Digital, for example. Earlier this month, Marathon said it produced 360.3 self-mined bitcoin during February 2022, a 729% increase from 43.4 self-mined bitcoin in February 2021. It also said it increased total bitcoin holdings to approximately 8,956 BTC.

There’s also Riot Blockchain, which recently posted impressive earnings. In fact, Riot’s total mining revenue in 2021 was $184.4 million, as compared to $12.0 million in 2020—an increase of 1,439% year-over-year. Also, mining revenue in excess of mining cost of revenues was $138.9 million, as compared to $5.7 million in 2020.

Or consider ETFs that are running with Bitcoin and mining stocks, such as the Amplify Transformational Data Sharing ETF (BLOK). With an expense ratio of 0.71%, the ETF offers exposure to Marathon Digital Holdings (MARA), Hut 8 Mining (HUT), HIVE Blockchain (HIVE), as well as large cap companies that have invested millions in Bitcoin, like Coinbase Global (COIN), Microstrategy Inc. (MSTR), Paypal Holdings (PYPL), and Square.

With Bitcoin showing big signs of life again, trades like these could gain big momentum.

Disclaimer: The information contained in this article is neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Investors Alley Corp. and its ...

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