What happened
Today's a day of recovery for high-profile cryptocurrency miners. A rather dramatic decline among crypto miners last week has continued into Monday morning. However, Marathon Digital (MARA -5.96%), Riot Blockchain (RIOT -5.82%), and Hive Blockchain (HIVE -6.14%) have all recovered nicely.
As of 2:30 p.m. ET, Marathon and Riot actually moved into the green, up 2.3% and 0.1%, respectively. While Hive was down approximately 2.9% at 2:30 p.m. ET, this was a marked improvement from earlier declines of as much as 13.2%.
Image source: Getty Images.
So what
Last Friday's bloodbath among crypto miners was related to concerns around increased regulatory scrutiny from U.S. lawmakers with respect to the energy consumption of crypto miners stateside. Other key jurisdictions such as China and India have worked to actively restrict (or ban) crypto mining for this reason. Accordingly, last week, Marathon, Riot, and Hive all sold off dramatically.
Indeed, with the broader crypto market recovering this morning, investors appear to be taking this as an opportunity to buy the dip. Crypto miners have been among the most beaten-down subsectors in the cryptocurrency space. It appears investors are now considering the idea that most major headwinds are priced into this sector right now.
Now what
Crypto miners Marathon, Riot, and Hive are all beholden to crypto prices. Accordingly, a widespread market sell-off is the last thing investors in these companies want to see.
However, given the scale of the decline among crypto miners last week, this impressive rally among these three companies signals investors may be willing to put a little risk capital to work in publicly traded companies with real cash flows and earnings.
Right now, crypto investors may want to keep an eye on these three miners as a bellwether of capital flows into the crypto space. Today's recovery appears to be bullish in this regard, at least from a short-term perspective.
