- In January, U.S. consumer prices rose by 6.4% more than was expected.
- Bitcoin mining stocks gained close to 20% during the week ending February 19th.
- Mike Colonnese reaffirmed his bullish views on BTC miners today.
The U.S. Bureau of Labour Statistics reported last week consumer prices The market was up 6.4%, more than anticipated. H.C. Wainwright & Co analyst Mike Colonnese is still bullish on bitcoin miners.
Stocks of mining stocks increased by close to 20% last week
Colonnese used the weekly price action as a basis for his recent opinion in a note.
Despite inflation keeping well above the Fed’s 2.0% target, BTC gained about 12% in the said week prompting an even bigger near 20% increase in mining stocks.
That’s particularly encouraging when compared to the benchmark S&P 500 index that actually lost 0.3% in the week ended February 19th. Colonnese stated in his research note that:
BTC prices also responded positively to news on 2/15 of the SEC’s proposal to expand existing qualified custodian rules for client assets held with investment advisers to crypto assets.
A four-month high was achieved by Hashprices
He also expressed his positive views on BTC miners by noting a 9.1% week-overweek increase in network hash rates to 319 EH/s. Continued upside in bitcoin prices pushed hashprices up to $0.08/TH in the said week – a more than 12% increase.
All of the above SEC proposal This policy is designed to protect investors from a qualified custodian bankruptcy. Colonnese wrote the following:
We see the proposal as a net-positive, provided that new requirements are not too burdensome for qualified crypto custodians. The proposed changes could improve investor protections and increase confidence in the crypto ecosystem.
Of the six bitcoin mining stocks he covers, Colonnese currently has a “buy” rating on five.