$MARA Banking On The Bitcoin Rally
Bitcoin might very well be on the precipice of substantial change after the SEC approved the first-ever leveraged Bitcoin futures ETF on June 23. One of the companies that stand to benefit the most from this approval is Marathon Digital Holdings, Inc. (NASDAQ: MARA) since its stock trades in tandem with Bitcoin. On that note, Bitcoin has been trading well past the $30 thousand mark since the news which could reflect on the MARA stock price when the market opens on Monday. As the recent news could open the door for further approvals on Bitcoin ETFs, the MARA stock forecast appears to be bullish in 2023.
MARA Fundamentals
Bitcoin’s price rose by as much as 5.5% when the news broke concerning the SEC’s approval of the futures ETF. This notable increase in BTC price is positively correlated with Bitcoin miners, which is why MARA stock might run as a result. With this in mind, the SEC’s approval could simply be the tip of the iceberg as the Bitcoin mining industry may experience another run when The Volatility Shares’ ETF BITX launches on the Chicago Board Options (CBOR) on June 27.
Leveraged Bitcoin futures ETF may seem like a loaded and complex term, but in actuality, it is simple to understand. Leveraged ETFs use financial tools like bonds, contracts, and debt as leverage in order to amplify their returns. In the case of the ETF in question, the financial instrument that is used as leverage is Bitcoin futures, which are contracts to exchange Bitcoin at a predetermined price and on a future date. Basically, a leveraged Bitcoin futures ETF functions like a spot Bitcoin ETF, with the exception that it is backed by Bitcoin futures as opposed to just Bitcoin.
The SEC’s decision will likely cause many positive reverberations in the Bitcoin industry. First and foremost, Bitcoin miners are likely to see an increase in revenue due to the fact that the price of Bitcoin is increasing. That means that earnings may become a major catalyst for many Bitcoin mining stocks such as MARA in the coming quarters.
Additionally, this approval means that other spot Bitcoin ETFs like Black Rock’s ETF are more likely to get approved, in which case, Bitcoin’s price may spike since spot ETFs are backed by Bitcoin. As investors are anticipating the SEC’s decision on a number of spot Bitcoin ETFs, MARA stock could continue its upward momentum over the coming weeks.
Technical Analysis
MARA stock is in a neutral trend and is trading in a sideways channel between $12.26, and $14.33. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs which are bullish indications. Meanwhile, the RSI is approaching overbought at 67 and the MACD is approaching a bearish crossover.
As for the fundamentals, the MARA stock forecast could be extremely bullish if the SEC approves spot Bitcoin ETFs. Following the SEC’s approval of the first futures Bitcoin ETF, spot Bitcoin ETFs could become a reality soon which would drive Bitcoin’s price up. Given MARA’s exposure to Bitcoin, such an increase in Bitcoin’s price would eventually reflect on the MARA stock price.
MARA Forecast
Due to the SEC’s announcement concerning the approval of the first-ever leveraged Bitcoin futures ETF, MARA stock and the entirety of the Bitcoin mining industry could witness a run due to this industry-wide catalyst. Additionally, this move opens up a plethora of possibilities concerning potential catalysts ranging from improved industry-wide revenue to additional spot ETFs approval. For these reasons, the MARA stock forecast appears to be bright in 2023.
MARA Fundamentals
Bitcoin’s price rose by as much as 5.5% when the news broke concerning the SEC’s approval of the futures ETF. This notable increase in BTC price is positively correlated with Bitcoin miners, which is why MARA stock might run as a result. With this in mind, the SEC’s approval could simply be the tip of the iceberg as the Bitcoin mining industry may experience another run when The Volatility Shares’ ETF BITX launches on the Chicago Board Options (CBOR) on June 27.
Leveraged Bitcoin futures ETF may seem like a loaded and complex term, but in actuality, it is simple to understand. Leveraged ETFs use financial tools like bonds, contracts, and debt as leverage in order to amplify their returns. In the case of the ETF in question, the financial instrument that is used as leverage is Bitcoin futures, which are contracts to exchange Bitcoin at a predetermined price and on a future date. Basically, a leveraged Bitcoin futures ETF functions like a spot Bitcoin ETF, with the exception that it is backed by Bitcoin futures as opposed to just Bitcoin.
The SEC’s decision will likely cause many positive reverberations in the Bitcoin industry. First and foremost, Bitcoin miners are likely to see an increase in revenue due to the fact that the price of Bitcoin is increasing. That means that earnings may become a major catalyst for many Bitcoin mining stocks such as MARA in the coming quarters.
Additionally, this approval means that other spot Bitcoin ETFs like Black Rock’s ETF are more likely to get approved, in which case, Bitcoin’s price may spike since spot ETFs are backed by Bitcoin. As investors are anticipating the SEC’s decision on a number of spot Bitcoin ETFs, MARA stock could continue its upward momentum over the coming weeks.
Technical Analysis
MARA stock is in a neutral trend and is trading in a sideways channel between $12.26, and $14.33. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs which are bullish indications. Meanwhile, the RSI is approaching overbought at 67 and the MACD is approaching a bearish crossover.
As for the fundamentals, the MARA stock forecast could be extremely bullish if the SEC approves spot Bitcoin ETFs. Following the SEC’s approval of the first futures Bitcoin ETF, spot Bitcoin ETFs could become a reality soon which would drive Bitcoin’s price up. Given MARA’s exposure to Bitcoin, such an increase in Bitcoin’s price would eventually reflect on the MARA stock price.
MARA Forecast
Due to the SEC’s announcement concerning the approval of the first-ever leveraged Bitcoin futures ETF, MARA stock and the entirety of the Bitcoin mining industry could witness a run due to this industry-wide catalyst. Additionally, this move opens up a plethora of possibilities concerning potential catalysts ranging from improved industry-wide revenue to additional spot ETFs approval. For these reasons, the MARA stock forecast appears to be bright in 2023.
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