JPMorgan: Bitcoin mining stocks are weak before the halving, providing a strong entry point for investors
ChainCatcher news, according to CoinDesk, JPMorgan stated that the recent weakness in mining stocks before the Bitcoin halving provides an attractive entry point for investors.According to a research report released on Tuesday, the total market capitalization of 14 publicly listed Bitcoin mining companies tracked by the bank fell by 28% from March 31 to April 15, to $14.2 billion. All stocks performed poorly, with each dropping at least 20%. Meanwhile, Bitcoin has risen 43% this year and 130% over the past six months, as "the typical post-halving rally seems to have been pulled forward."The bank indicated that they are particularly optimistic about Riot Platforms (RIOT) and Iris Energy (IREN), as these stocks offer attractive relative valuations. "With the Bitcoin halving approaching, increased volatility and trading volume for Bitcoin and mining stocks are expected." In the first two weeks of April, mining profitability was lower because "network hash rate growth outpaced the increase in Bitcoin prices."