Marathon Digital Holdings (NASDAQ: MARA) stock surged on bullish Bitcoin growth forecasts.
The price of Bitcoin (BTC) surged past $51,000 on Wednesday, marking a significant milestone as its market capitalization reached $1 trillion, a level unseen since December 2021.
The surging interest in Bitcoin can be attributed to the recent approval of a new wave of exchange-traded funds (ETFs) in January, fueling the growing fascination with the leading cryptocurrency. In addition, anticipation is building for the upcoming “halving” event in April, a process that helps regulate Bitcoin supply.
Analysts attribute much of Bitcoin’s recent strength to increased inflows into ETFs directly investing in cryptocurrency. Steven Lubka, head of private clients and family offices, notes that while outflows from the Grayscale Bitcoin Trust—the largest spot bitcoin ETF—have slowed, demand for alternative bitcoin ETFs remains robust.
Lubka expresses optimism about Bitcoin’s future, stating that the current setup appears “very bullish.” He predicts the cryptocurrency will achieve a new all-time high in the coming months. Historically, Bitcoin has witnessed price appreciation around the time of halving events, with Lubka noting that significant gains typically occur closer to or after the event.
Marathon Digital (NASDAQ: MARA) Stock Reaction
The surge in Bitcoin price propelled Marathon Digital (NASDAQ: MARA) shares upward, with MARA stock climbing 14.35% to reach a closing price of $29.41 on Wednesday. The traders had exchanged hands with 77,328,878 (77.32 million) shares compared to the average daily trading volume of 77.77 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
