Dogecoin, Penny Stocks, Bitcoin & What’s Next
Penny stocks, Dogecoin, Ethereum, Bitcoin…they’re all part of the higher-risk asset class traders and investors are hunting for in the stock market today. The last few months have seen muted thanks to bearish sentiment as cryptocurrency prices nosediving. At one point, the price of Ethereum was below $1,000, and Bitcoin dipped under $19,000. This helped put pressure on companies involved in cryptocurrency and blockchain technology businesses.
But the latest surge of interest ahead of the long-awaited “Ethereum merge” has crypto and stock traders optimistic. Both leading cryptocurrencies, Bitcoin & Ethereum, as well as altcoins and tokens, including Dogecoin and Shiba Inu, have all spiked higher this week. The bullishness has prompted traders to focus on blockchain and “bitcoin stocks” in late July.
The “Financial Hurricane” JPMorgan said to prepare for was pushed aside in exchange for high volatility trading action. As Bitcoin, Ethereum, and Dogecoin reclaim some of the 2022 losses, penny stocks traders are hunting for cheap names in the stock market today.
As we’ve seen, this arena is still very much on shaky ground. Regulators, governments, and even scammers are all bringing extreme emotion to both ends of the spectrum. Also, it isn’t uncommon to see massive breakouts and breakdowns within a short period.
Cryptocurrency Penny Stocks To Watch Now
What’s next for dogecoin, penny stocks, Bitcoin, Ethereum, and other digital assets? This is yet to be seen. However, we can see that there are signs of optimism in the market for the first time in a while. With this, cryptocurrency penny stocks are on the menu, and traders have a few in their crosshairs.
With the broader crypto industry trend, the digital asset platform company Bakkt Holdings has steadily climbed over the last few weeks. Despite a downbeat market, Bakkt has achieved several milestones this year. The first was experiencing strong customer activity. In its first quarter report, Bakkt said that digital asset conversion volume was up over 90% compared to the previous year. The company has also inked deals with American Bank, Global Payments, and Mastercard.
The last of these three partnerships is what has emphasized the potential that digital currency has. IN the headline outlining this Mastercard deal, Bakkt extended Mastercard’s ecosystem of cryptocurrency partners. As they labeled it, Crypto-as-a-Service will provide quick access to cryptocurrency capabilities.
“Through the power of the Mastercard network and Bakkt’s trusted digital asset platform, Mastercard partners will be able to offer cryptocurrency solutions. These include the ability for consumers to buy, sell and hold digital assets through custodial wallets powered by the Bakkt platform and streamlined issuance of branded crypto debit and credit cards,” the companies said at the time of the news.
Looking ahead, BKKT stock is back on the radar, albeit at much lower prices, as cryptocurrency prices shoot higher this week.
Hut 8 Mining Corp.
Another one of the digital asset companies to watch is Hut 8 Mining. It specializes in mining operations and is one of the largest in North America. In a July update, Hut gave an update on its Bitcoin holdings, which increased by 328 through June 30th. The company has an “unencumbered” Bitcoin reserve of 7,406. At today’s price of roughly $23,000 per BTC, those reserves are valued at over $170 million.
Looking ahead, Hut 8 has several potential catalysts to keep in mind. The first is the timing of production at its new North Bay site. It was scaled up throughout the month of June with roughly 5,800 miners. More scaling is expected to continue. Meanwhile, with average production (as of June 2022) sitting just shy of 11 BTC/day, it will be interesting to see if this pace was kept throughout July.
“The team had a successful month in North Bay and will continue to scale up over the next few weeks,” said Jamie Leverton, CEO. “We are confident that our HODL strategy, coupled with the uncorrelated recurring revenue from our high-performance computing business, will allow us to continue to successfully navigate the current market.”
If HUT stock is on your watch list, keep in mind that it is more directly correlated to the price of BTC. Based on recent fluctuations in the cryptocurrency market, volatility will likely be something to consider.
Bitcoin mining company Bitfarms continued trading higher on Tuesday thanks to cryptocurrency optimism. Like Hut, Bitfarms is also closely correlated with digital asset prices and, as such, should be treated similarly when it comes to volatile trading.
Bitfarms recently published its Juen 2022 production update. The company mined 420 BTC at an average of 14 BTC/day. “In June, we completed the building structure for the first 50 MW warehouse in Rio Cuarto, Argentina, and are nearing completion of its roof and floor. Construction is also progressing smoothly on the construction of the high-voltage 132-kilovolt transmission line that will feed the site,” said Emiliano Grodzki, CEO of Bitfarms. “With construction on schedule, we continue to expect production to commence at this first warehouse in Q4 2022, and our plan remains to complete the second 50MW facility in Q1 2023.”
Based on the latest update, Bitfarms reported 3,144 BTC in custody as of June 30th. At today’s price of roughly $23,000/BTC, that has a value of more than 72 million. Looking ahead, the company is completing infrastructure for its “Bunker” and reported installation and operation of 2,000 Whatsminer M305 rigs to increase the total hash rate of the operation.
Bitcoin/Blockchain Penny Stocks To Watch
When it comes to cryptocurrency stocks, volatility coincides with market movements. Today this volatility leans to the bullish side of things. But as we’ve seen in the past, this can quickly change. Knowing this, it’s important to understand how to handle situations where high volatility plays a role.