Cryptocurrency miner and green energy purveyor CleanSpark (CLSK -1.59%) was lighting a fire under investors over the past few trading days. According to data compiled by S&P Global Market Intelligence, the company's share price was up by slightly under 10% week-to-date as of early Friday morning.
The top crypto's price was rising, as was speculation about a new ETF
CleanSpark is an active and assertive Bitcoin miner, so naturally its performance depends heavily on the movement of the cryptocurrency.
Fortunately for the company, Bitcoin has been doing well lately; in the period from last Friday to this one, it advanced by 9% to hit nearly $29,340. That's not far from the psychologically important $30,000 level.
The reasons behind Bitcoin's latest gravity-defying stretch are numerous. Among other key catalysts, the yield of the U.S. government's 10-year Treasury note -- considered by many to be the safest investment on the scene -- retreated from multiyear highs. The decline of the reputedly ultra-secure investment's yield led to increased appetite for riskier plays. Cryptos are considered to be among the riskiest.
Another factor is a security expected by many crypto fans to win regulatory approval soon, BlackRock's innovative Bitcoin exchange-traded fund (ETF). On Monday an inaccurate posting about that approval being granted sent Bitcoin, plus a variety of other cryptos and related assets, well higher. Even after the report was debunked (and rescinded by the reporting party), bullish investors didn't sell off their holdings much.
Time to let your profits run?
The environment for cryptocurrencies and, by extension, crypto miners, looks very favorable just now, so we shouldn't be surprised to see the current rally continue. A caveat, however: The prices of such assets are inherently volatile, so if you're plowing into them be well aware of their fundamentals and the current state of the macroeconomy. Ignorance is not bliss in the crypto world.
