- Shares of Marathon Digital rose 12% at the open on Tuesday as the price of Bitcoin soared.
- BTC advanced as much as 7% on Tuesday to sit above $57,100 for the first time since December 2021.
- The BTC halving is approximately 58 days away, leading the market to expect an uptrend.
- Consumer confidence and durable goods orders show weak data.
The actions of Marathon Digital (MARA) They rode the Bitcoin price wave on Tuesday. MARA soared more than 12% at Tuesday's open, while the Bitcoin (BTC) it advanced a solid 7% to $57,100 – its highest level since December 2021 – before retreating to $56,800.
Marathon Digital, a Bitcoin and cryptocurrency miner in addition to other companies, hit its highest share price since January 2022. However, MARA stock lost some luster as the session progressed, with its rally slowing to 4.25 % at the closure.
The broader market was mixed on Tuesday after U.S. durable goods orders and consumer confidence figures disappointed the consensus of economists. The Dow Jones fell 0.25%, while the Nasdaq and S&P 500 rose moderately.
Marathon Digital Stock News: Halving Narrative Helps Boost Bitcoin Price
Lately, several stories and news have come together to improve the prospects of Bitcoin. First, the emergence of spot Bitcoin ETFs in January created a new gateway for the asset, as money poured into at least 11 funds that have been approved by the Securities and Exchange Commission (SEC). More are said to be on the way.
All this new capital means that spot Bitcoin ETFs now account for 40% of the value of all Gold ETFs in just under two months. ETFs make it easier for large investors to invest in Bitcoin the same way they would invest in stocks. Some ETF experts already claim that Bitcoin ETFs will surpass the value of Gold ETFs in just two years.
So, even though Bitcoin conquered the $50,000 level in just the last month, MicroStrategy (MSTR) announced that it would spend $155 million to acquire another 3,000 BTC. This was a sign of confidence on the part of the software company that has pinned its entire legacy on the king of cryptocurrencies.
Furthermore, the entire cryptocurrency ecosystem watches with suspense as the calendar inevitably moves towards the next Bitcoin halving. The current estimate based on hash mining rates is that the halving will begin in 58 days. This means that the current block reward given to Bitcoin miners like Marathon Digital of 6.25 BTC will be halved to 3.125 BTC. While miners earn less Bitcoin for their troubles, the price of Bitcoin tends to skyrocket in the 18 months following a halving.
Last week, Marathon Digital launched a new service called Slipstream. It is “a Bitcoin transaction dropshipping service designed to expedite confirmations of large or non-standard Bitcoin transactions.”
Frequently asked questions about the S&P 500
What is the S&P 500?
The S&P 500 is a widely followed stock index that measures the performance of 500 public companies and is considered a broad measure of the U.S. stock market. The influence of each company in the calculation of the index is weighted based on market capitalization. This is calculated by multiplying the number of listed shares of the company by the share price. The S&P 500 Index has achieved impressive returns: $1.00 invested in 1970 would have produced a return of almost $192.00 in 2022. The average annual return since its inception in 1957 has been 11.9%.
How are companies chosen to be included in the S&P 500?
Companies are selected by committee, unlike other indices where they are included based on established standards. Still, they must meet certain eligibility criteria, the most important of which is market capitalization, which must be equal to or greater than $12.7 billion. Other criteria are liquidity, domicile, market capitalization, sector, financial viability, listing time, and representation of the sectors of the United States economy. The nine largest companies in the index represent 27.8% of the index's market capitalization.
How can I trade the S&P 500?
There are several ways to trade the S&P 500. Most retail brokers and spread betting platforms allow traders to use Contracts for Difference (CFDs) to place bets on price direction. In addition, you can buy index funds, mutual funds and exchange-traded funds (ETFs) that track the price of the S&P 500. The most liquid of the ETFs is the London Stock Exchange ETF. The most liquid of the ETFs is State Street Corporation's SPY. The Chicago Mercantile Exchange (CME) offers futures contracts on the index and the Chicago Board of Options (CMOE) offers options, as well as ETFs, inverse ETFs, and leveraged ETFs.
What factors drive the S&P 500?
There are many factors that drive the S&P 500, but primarily it is the aggregate performance of its component companies, revealed in their quarterly and annual earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment, which if positive, drives earnings. The level of interest rates, set by the Federal Reserve (Fed), also influences the S&P 500, as it affects the cost of credit, on which many companies largely depend. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
Marathon Digital Stock Forecast
Marathon Digital shares quickly retreated from their two-year high of $32.87 on Tuesday. Of course, it is a bad sign, but the new range high should trigger fresh entries from the bulls.
The $30-$32 range provided support for much of 2021 and part of 2022, so traders will be watching to see if MARA manages to use this price level as a base. Just a few weeks ago, MARA was trading near $16.
MARA daily stock chart
Despite the recent rally in MARA stocks, the Relative Strength Index (RSI) stands at 65 points. This is a decent level for bulls as MARA stock does not appear overbought yet. The RSI level of 70 is often considered the overbought threshold.
Another point of pride for the bulls is that the 20-day SMA just surpassed its 50-day counterpart. This means a longer recovery is likely. The last time this occurred, the recovery occurred from November 15 to December 27, 2023.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
