Bitcoin mining stocks increased as the value of the No. 1 digital currency climbed past $17,000. Traditional markets and stocks tied to cryptocurrencies also increased.
As of 12:30 p.m. ET, Bitfarms increased by 32%, Marathon increased by 24%, and Riot increased by 18%. According to CoinMarketCap, Bitcoin is currently up 1.4%, trading at about $17,240.
Approximately six miners saw increases of over 20%, and a few more had increases of over 10%. After months of constant decline, several of these companies are still trading for less than $1. Due to rising energy costs and mining difficulties, companies experienced declining profitability during 2022. At the same time, the price of Bitcoin was falling.
Since its January 1, 2023, low of $16,496 (which was registered on January 1), Bitcoin has increased by more than 4%. The recent price increase coincides with the escalating cryptocurrency problem, which has been made worse by the recent scandal surrounding Barry Silbert’s Digital Currency Group.
Authorities in the United States are looking into key crypto companies. The investigation that could herald another black swan catastrophe for the Bitcoin market appears to be centered on DCG’s internal transfers. Authorities have not yet filed any charges against Silbert’s crypto enterprise.
In a recent acrimonious argument, Silbert and Gemini co-founder Cameron Winklevoss traded accusations of employing “bad faith tactics” to collect the $900 million debt that Genesis, a DCG subsidiary, owes to Gemini Earn clients. Although Silbert downplayed the allegations, DCG continues to be shrouded in considerable mystery.
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