This Stock Could Triple If Bitcoin Can Sustain Recent Momentum
Bitcoin has taken a massive hit.
Since topping out at $68,978 in November, the digital currency plunged to a low of $32,990.
However, after catching double-bottom support—and pricing in a good deal of negativity—Bitcoin is starting to recover. From a current price of $46,633, we’d like to see it challenge its prior high from November. After all, retail and institutional interest is still strong.
Even better: analysts still believe Bitcoin could soar up to $100,000.
Goldman Sachs even says this could happen over the next five years. Samson Mow, chief strategy officer for Blockstream thinks it will be much faster, “We’ll see $100k within the first half of the year,” he told Yahoo Finance.
How should you invest in anticipation of the Bitcoin Explosion?
One way is to invest in Bitcoin itself. However, if you’re looking for a cheaper alternative that tracks the price of Bitcoin, consider mining stocks, like Marathon Digital Holdings (MARA). At the moment, MARA trades at $25.26. We’d like to see the stock challenge prior resistance around $83.45 on a Bitcoin bounce.
Better, MARA may be one of the biggest beneficiaries of a Bitcoin recovery.
Consider this: as of January 1, MARA produced about 3,197 self-mined Bitcoin in fiscal year 2021, an 846% increase—and 1,098 self-mined Bitcoin during Q4 2021 alone, including a record 484.5 self-mined Bitcoin during December 2021. It also increased total Bitcoin holdings to approximately 8,133 BTC.
In addition, Jefferies’ analyst Jonathan Petersen just initiated a buy rating on the MARA stock, with a price target of $51 a share. BTIG analyst Gregory Lewis also initiated a buy rating on the Bitcoin mining stock, with a price target of $50.While it’ll take some patience for Bitcoin and mining stocks to recover lost ground, give these investments some time. If Bitcoin can finally reach $100,000, stocks like Marathon Digital Holdings could triple, even quadruple from current prices.
This article originally appeared at Investors Alley. The author is Ian Cooper.
Category: Stocks
