Why Cryptocurrency Mining Stocks Surged On Tuesday

Cryptocurrency mining stocks recorded gains, on Tuesday, due to a price rebound among cryptocurrencies including Bitcoin ( BTC -0.08% ), in addition to the hotter than normal stock market. The S&P 500 was up 2%, which is a big move for a single day. And Bitcoin is up 4% over the past 24 hours and up around 14% from its weekly low.

Cryptocurrency mining stocks up today including Canaan ( CAN 9.68% ), Marathon Digital Holdings ( MARA 10.86% ), and HIVE Blockchain Technologies ( HIVE 8.58% ), up 11%, 9%, and 9%, respectively.

There were several factors negatively impacting the price of Bitcoin over the past week. For example, cryptocurrency exchange BitMart was hacked on Saturday and the bad guys got away with between $150 million and $196 million in digital assets, according to CNBC. Whenever an exchange is hacked like this, it can spook investors in cryptocurrencies.

Besides Bitcoin, investors were recently reminded that there’s a big need for judgement when it comes to cryptocurrencies. Trading platform Bitget is based in Singapore. But this week the Monetary Authority of Singapore reportedly suspended Bitget’s license because it promoted an obscure cryptocurrency based on the popular music group BTS from South Korea.

Both the stock market and the cryptocurrency market rebounded sharply on Tuesday, which was doubly helpful for stocks like Canaan, Marathon Digital, and HIVE Blockchain Technologies.

None of these companies had news today. Marathon Digital did have a filing with the Securities and Exchange Commission (SEC) yesterday.

However, this was merely an official filing of previous press releases. So there wasn’t anything materially moving these stocks today other than general market conditions.