• Marathon Digital (MARA) stock price surged to the highest level since November 2020, with its shares jumping to a high of $12.75.
• The surge is mainly attributed to the ongoing trend of TradFi, where traditional finance companies are transitioning to the crypto industry.
• Going forward, MARA stock price will depend on whether Bitcoin moves above $31,000 and invalidate the double-top pattern.
Introduction
This article looks at how Marathon Digital’s (MARA) stock price has been performing lately and whether it is a good buy for investors.
Bitcoin Mining Stocks Jump
Bitcoin mining stocks have seen a bullish breakout this week, led by Marathon Digital share price soaring to its highest level since November 2020. Other bitcoin mining companies in the industries like Riot Platform and Hut 8 Mining also surged due to favorable market conditions for cryptocurrencies.
TradFi Driving Factors for Bitcoin Prices
The main reason behind MARA’s surge in share prices is that Bitcoin prices have neared their highest point this year as indicated by the Crypto Fear & Greed Index moving into the greedy zone. This rebound was driven by what analysts refer to as TradFi (traditional finance transitioning into crypto). Major financial institutions like Blackrock, Invesco and WisdomTree have all filed applications for Bitcoin ETFs with the SEC, while large banks such as Deutsche Bank and Credit Agricole have applied for crypto custody licenses in their respective countries.
MARa Stock Price Forecast
The daily chart shows that MARA’s stock price has been in a slow bullish trend over the past few weeks with no signs of slowing down anytime soon. However, its future performance will be dependent on whether or not Bitcoin manages to move above $31,000 – an important resistance level which could potentially invalidate current double-top patterns if breached successfully.
Conclusion
In conclusion, MARA share prices have soared significantly this week largely due to favorable market conditions for cryptocurrencies caused by TradFi developments within traditional finance institutions entering into crypto markets. Going forward, MARA’s performance will depend heavily on whether or not Bitcoin can break through $31k resistance levels which would invalidate existing double-top patterns currently present in charts.