• U.S. consumer prices rose by a more than expected 6.4% in January, but Bitcoin mining stocks still gained nearly 20%.
• H.C. Wainwright & Co analyst Mike Colonnese remains bullish on BTC miners despite inflation and the S&P 500 index losing 0.3%.
• Hashprices hit a four-month high of $0.08/TH due to increasing investor confidence following the SEC’s proposal to expand existing qualified custodian rules for crypto assets held with investment advisers.
Inflation Ticked Up in January
The U.S. Bureau of Labor Statistics reported that consumer prices were up a more than expected 6.4% in January, prompting some caution among investors about Bitcoin’s (BTC) prospects this year amid rising inflationary pressures and the weakening US dollar exchange rate relative to other global currencies like the Euro or Yen. Despite these macroeconomic factors, however, BTC mining stocks still managed to gain nearly 20% in the week ended February 19th according to H.C Wainwright & Co analyst Mike Colonnese who reiterated his bullish view on BTC miners today despite the overall negative sentiment surrounding them at present due to their close linkages with the cryptocurrency markets which have been historically volatile and unpredictable at times over the past few years..
SEC Proposal Boosts Investor Confidence
Colonnese also attributed some of last week’s gains in bitcoin mining stocks to news from 2/15 that the Securities and Exchange Commission (SEC) proposed expanding existing qualified custodian rules for client assets held with investment advisers to crypto assets as well which could potentially increase investor protections and instill greater confidence in crypto ecosystems going forward if implemented successfully without any major hiccups or delays alongthe way as was initially feared when such reports first started doing rounds earlier this month..
Hashprices Touch Four Month High
A 9.1% week-over-week increase in network hash rate also contributed heavily towards pushing hashprices up to $0.08/TH – a more than 12% increase – while also helping propel bitcoin prices higher during last week’s trading session as well according to Colonnese who currently has a „buy“ rating on five out of six bitcoin mining stocks he covers at present..
Overall, it seems like investors still remain cautiously optimistic about bitcoin miners even after inflation ticked up significantly during January 2021 thanks mainly to increased investor confidence following last week’s SEC proposal coupled with an uptick in network hash rates resulting from more miner activity occurring across various parts of the world recently when compared against previous months since late 2020