Bitcoin miner stocks driven by AI sentiment, not BTC prices

Bitcoin mining stocks are now more influenced by AI-sector investor sentiment and financing conditions than by BTC prices, as miners shift towards AI data center operations, according to Binance Research. From January to June 18, BTC dropped 28%, while the bitcoin miner ETF WGMI surged 88%. Following a 30% rebound in BTC, WGMI fell 57%. Over the last 60 days, the correlation between BTC and AI-transitioning miners like IREN, Core Scientific, TeraWulf, and Cipher was only 0.29 to 0.33, compared to a correlation of 0.59 to 0.77 with semiconductor stocks. Shares of these miners have decreased by 54% to 69% since June. In contrast, Mara, Riot, and CleanSpark, which hold significant BTC amounts, showed higher correlations with BTC at 0.41 to 0.57, experiencing smaller declines in share prices. Binance Research indicated that AI-transitioning miners are becoming investment vehicles reflecting AI financing conditions more than BTC prices, warning that worsening financial conditions could lead to increased BTC sales to repay debts, adding selling pressure in a bear market.

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