The prospect of Fed policy changes provoked the growth of shares of BTC miners

  • 22:03 Jan 11, 2023
The prospect of Fed policy changes provoked the growth of shares of BTC miners

Amid expectations of the upcoming Consumer Price Index report, bitcoin surpassed the $17,000 mark, and miners' shares rose after it. 

Reports that the Fed may change its policy and abandon its aggressive fight against inflation somewhat revived the markets, and traders resumed injections. As a result, the shares of many major miners showed significant growth. Stock markets were not left out either, with the S&P 500 index gaining 1% and the Nasdaq up 2%. 

Assumptions about the change in the regulator's policy were prompted by the report of the U.S. Labor Department dated January 7, according to which the growth of wages slowed down in December. It demonstrates the effectiveness of the Fed's earlier measures to raise the interest rate and the prospect of refusal of their further implementation. 

According to Bloomberg, traders expect the effective Fed funds rate to fall below 5%. In addition, the reason for the rally in shares of public miners may be the closing of short positions in low-liquid markets. Sometimes this plays a role in the initial stages, as traders buy assets after their previous sale. 

Among the companies whose securities showed active growth was Riot, Hut8, and Marathon Digital. All of them suffered serious financial losses during the last year due to the increasing difficulty of bitcoin mining and the fall in its value. In addition, not all BTC miners were able to meet the obligations on loans, which were secured by the equipment that lost up to 90% in price. 

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