Key points:
- The Argo Blockchain share price has fallen 62% in 2022 as Bitcoin prices fell.
- Investors today barely reacted to the positive June Bitcoin mining report.
- Can the ARB shares recover? Such a move will rely heavily on Bitcoin.
The Argo Blockchain PLC (LON: ARB) share price barely moved today after the Bitcoin mining company announced that it had mined 179 Bitcoins or its Equivalents (BTC) in June 2022 compared to 124 BTC in May.
Investors seemed largely uninterested in the positive operations update as they remain focused on Bitcoin prices and their impact on the company’s future revenues and profits. The massive decline in Argo Blcokchain’s share price mirrors the decline witnessed in Bitcoin prices and the larger cryptocurrency industry.
Also read: How To Trade Bitcoin: A Beginner's Guide.
The relevant question now is, can Argo Blockchain shares recover? The short answer is that it all depends on what happens to Bitcoin over the coming weeks and months. If Bitcoin prices rally higher, we will see a similar rally in Argo shares, and if Bitcoin prices fall further, we could be in for another drop in Argo’s share price.
Like most Bitcoin miners, Argo tends to keep all the Bitcoin it mines with the hope that it will be worth much more in future, at which point they can sell the crypto at a higher price. However, as the latest cryptocurrency market crash has shown, sometimes, cryptos can crash too instead of rising.
When Bitcoin was trading at over $60,000 a coin, many experts called for the next target to be at $100,000. However, very few people saw the current bear market coming, more so in the crypto sector, which is generally regarded as insulated from the traditional financial markets.
The bitcoin rally from late 2020 to 2021 was attributed to the broader adoption of cryptocurrencies as a medium of exchange and an alternative payment system, with very few connecting the crazy money printing by the Federal Reserve and the crypto rally.
However, Warren Buffett famously said, “only when the tide goes out can you see who was swimming naked.”
Bitcoin is trading at levels last seen in December 2020, with the next support level at $13,900. However, we all hope that the world’s leading crypto has finally bottomed and will rally higher.
*This is not investment advice. Always do your due diligence before making investment decisions.
The Argo Blockchain share price.
The Argo Blockchain share price has fallen 62.02% in 2022. Could it have bottomed?