Bitcoin Mining Stocks Soar 10% as BTC Hovers Near 17-Month High at $35K

The bitcoin derivatives market shows signs of overheating, one observer noted.

AccessTimeIconNov 2, 2023 at 10:31 p.m. UTC
Updated Nov 2, 2023 at 10:39 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Bitcoin mining stocks soared Thursday as bitcoin (BTC) itself traded around its 17-month high.

U.S.-listed mining companies such as Marathon Digital (MARA), Riot Platforms (RIOT) and CleanSpark (CLSK) rallied 10%-12% during the day amid a wider surge in equities. The Dow Jones Industrial Average notched its best day since June.

Crypto-related stocks were benefiting from thawing sentiment on Wall Street following a dismal October, as traders increasingly bet on the Federal Reserve is finished with its historic interest rate hiking cycle.

The S&P 500 and Nasdaq equity indexes advanced for the second consecutive day as investors continue to digest Fed Chair Jerome Powell's slightly dovish remarks Wednesday and decision to leave rates unchanged for the second consecutive month amid signs of easing inflation and decreasing labor costs.

"If you're a crypto trader who believes that a crypto and equity bull market is around the corner, I'd implore you to focus on bitcoin mining stocks to generate the most alpha," Caleb Franzen, founder of Cube Analytics, said in an X/Twitter post.

Coinbase (COIN) also closed the day with an 8.7% advance, but some of those gains were pared back after market close after the cryptocurrency exchange reported lower trading volumes in Q3. The company beat analyst expectations of revenues and earnings.

Cryptocurrencies cool

BTC hovered around the $35,000 mark, just off its highest price level since May 2022.

Ether (ETH), the second largest crypto asset by market capitalization, lingered around $1,800, down nearly 2% over the past 24 hours.

The CoinDesk Market Index (CMI), which is a proxy for the broad crypto market, declined 1.3% over the same period.

Layer 1 network Cardano's native token (ADA) and metaverse platform Decentraland's (MANA) were notable outperformers advancing nearly 6%. Chainlink (LINK), venture capital-backed blockchain Aptos's token (APT) and liquid staking platform Lido's governance token (LDO) tumbled 5%-7%.

Solana (SOL) cooled off after its spectacular rally, doubling its price in two-plus weeks. The token dipped to $40 from a 14-month high of $46.60 yesterday.

The bitcoin (BTC) price rally's floor

Charles Edwards, founder of bitcoin-focused hedge fund Capriole Investments, warned about signs of over-exuberance in the bitcoin derivatives market."All bitcoin derivatives markets are overheated at present," Edwards said. "Stay safe out there."

Crypto trading firm QCP Capital said in a Thursday market update that BTC will likely stabilize around the current level barring a major catalyst, with $32,000 providing a price floor.

(QCP Capital)
(QCP Capital)

"It will take the spot ETF approval for us to start the new exponential leg higher," analysts with the crypto asset trading firm QCP Capital said, referring to the possibility the U.S. Securities and Exchange Commission (SEC) approves a bitcoin-settled exchange-traded fund. "At the same time, we expect only a major rug pull from SEC Chair Gensler will be able to take us back below $32,000 at this stage."


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.