- U.S. consumer prices were up a more than expected 6.4% in January.
- Bitcoin mining stocks still gained near 20% in the week ended Feb 19th.
- Mike Colonnese reiterated his bullish view on BTC miners today.
Last week, the U.S. Bureau of Labour Statistics said consumer prices were up a more than expected 6.4% in January. Still, H.C. Wainwright & Co analyst Mike Colonnese remains bullish on bitcoin miners.
Mining stocks gained near 20% last week
Colonnese quoted the price action for the week that ended on February 19th to defend his view in a recent 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 also said in his research note:
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.
Hashprices touched a four-month high
A 9.1% week-over-week increase in the network hash rate to 319 EH/s also fed into his constructive view on BTC miners. Continued upside in bitcoin prices pushed hashprices up to $0.08/TH in the said week – a more than 12% increase.
The aforementioned SEC proposal aims to protect investors against a qualified custodian bankruptcy. To that end, Colonnese wrote:
We view the proposal as a net positive, so long as new requirements for qualified crypto custodians are not onerous, as proposed changes could increase investor protections, and instill greater confidence in crypto ecosystem.
Of the six bitcoin mining stocks he covers, Colonnese currently has a “buy” rating on five.