10x Research: Crypto mining stocks may rise further, but it is recommended to invest in the bullish trend of Bitcoin

In its strategic report, “Bitcoin Mining Wars Intensify — How to Get Involved?”, 10x Research said it sees Bitfarms as a major beneficiary of the ongoing consolidation in the Bitcoin mining industry. Bitfarms’ stock price has surged 25% since the report was published. Other popular mining stocks, such as Bitdeer (up 61%), have also performed well, all in two weeks. However, it still advises investors to proceed with caution. Bitcoin fell slightly by 1% in these two weeks, failing to break through the $71,946 resistance level. While crypto mining stocks (such as Bitfarms) may rise further, it is more inclined to invest in Bitcoin’s potential bullish trend. This is not the case at present, and the self-reinforcing Bitcoin mechanism has generated less liquidity in February/March. Despite MicroStrategy’s announcement that it intends to privately issue $500 million of convertible senior notes to purchase more Bitcoin, the market reaction was relatively calm - unlike in the fourth quarter of 2023 and the first quarter of 2024, when these news led to a significant increase in retail speculation and higher funding rates.