Why HIVE Stock, Hut 8 and Cryptocurrency Climbed Today

HIVE stock, Hut 8 stock and cryptocurrencies jumped Friday with a possible announcement on the way.

| More on:
Businessman with his palm open containing a hologram saying 'Why Invest In Cryptocurrency?'

Image source: Getty Images.

HIVE Blockchain Technologies (TSXV:HIVE)(NASDAQ:HVBT), Hut 8 Mining (TSX:HUT)(NASDAQ:HUT), and other cryptocurrency miners climbed on Friday morning as cryptocurrencies such as Bitcoin and Ethereum climbed higher. Shares of HIVE stock traded 5% higher on Friday morning, while Hut 8 stock reached 13% at the same time.

What happened

It looks like a rebound in these cryptocurrency miners is related to the rebound in cryptocurrency. Bitcoin continues to climb back to all-time highs. As of writing, one Bitcoin is worth about $74,000. To reach all-time highs, it would need to reach $81,445 per Bitcoin. Ethereum also continued to climb toward all-time highs, trading at $4,705 Friday morning. It would need to reach $5,267.

A huge selloff occurred earlier in the year, with Bitcoin and Ethereum losing about half of their value. This led to miners losing value right along with it. Several issues caused the drop, from environmental factors to government pushback, but lately, there has been a recovery.

So what

Cryptocurrency investors have likely been watching HIVE stock, Hut 8 stock, and of course, cryptocurrencies closely over the last few months for signs of life. But those signs have to last longer than the couple of months we saw at the beginning of 2021.

Part of this has to do with the potential of an announcement by the United States Securities Exchange Commission (SEC). Several sources stated that the wait may be over for those in the United States to see a Bitcoin exchange-traded fund (ETF).

If you think this isn’t news, I don’t blame you. In Canada, there are a few ETFs in the Bitcoin sector. However, this hasn’t been the case in the U.S. until now.

Now, the SEC could be set not to block the matter, sending mining stocks like HIVE stock and Hut 8 stock climbing at the news, along with cryptocurrencies.

Now what

These new ETFs could be launched in the U.S. as early as next week. Several more applications may also come in, with a deadline for ETF applications to the SEC set for October 25. That means next week could be absolutely massive for Bitcoin, Ethereum, and mining stocks like HIVE stock and Hut 8 stock.

So what should Motley Fool investors do? If you’re looking to get in on mining stocks, now could be a great time. On the one hand, HIVE stock remains cheap. However, Hut 8 stock continues to reach its all-time highs and is just short of it as of writing. Both remain on the Nasdaq, offering exposure to the U.S. market.

With the U.S. recently announced as having the highest number of miners in the world, beating out China, next week could be a huge one for cryptocurrency and mining stocks. The SEC announcement should absolutely not be ignored. Government backing for ETFs means it’s only a matter of time before cryptocurrencies perhaps surge to heights not seen since early 2021. If you’ve been waiting for a rebound, now is the time to start putting these on your watchlist.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Tech Stocks

Dad and son having fun outdoor. Healthy living concept
Tech Stocks

Prediction: These Will Be 2 of the Strongest TSX Stocks in 2023

Tech stocks may have dropped during the last few years, but these two TSX stocks are bound for major growth…

Read more »

edit Person using calculator next to charts and graphs
Tech Stocks

This 1 Tech Stock Is My Hands-Down Choice Over Shopify

A small-cap tech stock with consistent revenue growth and nearly 300% profit growth is a better option over the TSX's…

Read more »

edit Women wearing red sweater shopping online and using credit card at home office
Tech Stocks

Down by 62%: Is Shopify Stock Worth Adding to Your Portfolio Now?

Shopify (TSX:SHOP) stock has been rallying since November began but still trades for a discount, and it might be a…

Read more »

data analyze research
Tech Stocks

2 TSX Growth Stocks I’d Buy and Hold Forever

Given their long-term growth potential and discounted stock prices, I believe these two TSX growth stocks would be an excellent…

Read more »

A worker uses the cloud for paperless work. tech
Tech Stocks

1 Little-Known Canadian Stock to Buy Before Everyone Else Does

Softchoice is a top TSX stock for value and growth investors due to its widening profit margins and top-line expansion.

Read more »

four people hold happy emoji masks
Tech Stocks

3 Undervalued Canadian Stocks Worth a Buy Right Now

These Canadian stocks remain highly underrated, given their future path to growth and past performance that remains incredibly strong.

Read more »

Man holding magnifying glass over a document
Tech Stocks

Stock Split Watch: Is Constellation Software Next?

Many stocks that got to the same price as Constellation Software (TSX:CSU) split their stocks. Is CSU next?

Read more »

Shopping and e-commerce
Tech Stocks

Lightspeed Stock Fell 15% in November – Is it a Buy Today?

Lightspeed stock may have a rough 2023, but that doesn't mean you should ignore it, even after shares dropped .

Read more »