Bitcoin mining stocks usually follow BTC’s price because it directly influences company earnings. These stocks were beaten down heavily in the last quarter of 2022, especially in December. The downturn after FTX’s collapse worsened with the bankruptcy filing of the largest U.S.-based Bitcoin mining company, Core Scientific.
During this time, other mining stocks, like Marathon Digital Holdings (MARA) in the chart below, exhibited a weak correlation with Bitcoin’s price, suggesting that December’s downturn was probably overblown.
