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Bitcoin mining companies’ shares have fallen from their highest levels in 2024 as investors fear post-halving profits. The Avalanche-based home equity line of credit (HELOC) protocol received $10 million in venture capital financing, and the founder of 10x Research claims that risk assets may be at a tipping point when the outlook turns bearish. Cryptocurrency market faced three significant developments in the last 24 hours.
Sales Pressure Increases Before Halving Event
Bitcoin mining stocks have fallen from their highest levels since the beginning of the year following the halving event, as investors’ confidence in their profitability waned. However, Mitchell Askew, the chief analyst at Bitcoin mining firm Blockware Solutions, stated in his remarks that the fears are mostly unfounded:
“Investors will realize that most of their fears are baseless.”
He claimed that profitability concerns and a 7.5% price drop in Bitcoin over seven days were behind the decline in miners’ stocks after the April 20 halving event.
US miners Marathon Digital (MARA), Riot Platforms (RIOT), and CleanSpark (CLSK) have fallen by 53%, 54%, and 38.1% respectively from their peaks earlier this year. Singapore’s Bitdeer Technologies dropped 40.8% (BTDR) and Australia’s Iris Energy (IRIS) fell 47.6% since mid-February 2024. Askew commented on the matter:
“The halving will be a news-buying event for public Bitcoin miners and the private ASIC market.”
Notable Protocol on Avalanche Network
The home equity line of credit (HELOC) tokenization protocol Homium completed a $10 million financing round led by Sorenson Impact Group and Blizzard. The company announced on April 15 that Homium, built on the Avalanche blockchain network, allows homeowners to borrow against their home equity without increasing their monthly debt burden.
Homeowners using Homium primarily pledge a portion of their home’s future value as collateral for the credit equity. Meanwhile, investors purchase an asset that has completed the tokenization process following the price increase of a pool of joint homes. Initially, home tokenization loans were only available in Colorado, USA.
Tokenization is described by Citi as the next killer use case for crypto. The investment bank stated that real-world asset tokenization could reach $5 trillion by 2030.
Alarming Statement from a Market Expert
10x Research‘s founder Markus Thielen suggests that the stock and cryptocurrency markets might be beyond a turning point heading towards a significant price correction. Thielen wrote last night that they sold everything, citing persistent inflation, decreasing interest rate cuts, and rising bond yields as reasons behind the downward trend. In a research note dated April 16, the founder stated:
“The primary trigger is unexpected and persistent inflation. Considering that the bond market currently foresees fewer than three cuts and 10-year Treasury Yields have exceeded 4.50%, we might have reached a critical spillover point for risky assets.”
According to CoinMarketCap data, the bearish research note came after Bitcoin’s price fell by 9.3% over the week to trade above $63,400.
