KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Bitcoin’s Drop & Market Impact
- Bitcoin has plunged over 20% since Inauguration Day, from nearly $110,000 to around $87,000.
- Coinbase (COIN) tumbled more than 20% over the past five days, while Robinhood (HOOD) dropped 24%.
- Crypto miners like Riot Platforms (MARA), Core Scientific (CORZ), and CleanSpark (CLSK) also saw sharp declines.
Why This Could Be a Buying Opportunity
- SEC dropped investigations into Coinbase & Robinhood, easing regulatory concerns.
- Trump’s SEC nominee, Paul Atkins, is seen as a pro-crypto advocate, signaling an end to "regulation by enforcement."
- Analysts see strong upside potential:
- Oppenheimer's Owen Lau: Coinbase price target at $388 (85% upside).
- Daiwa’s Steven Nie: Coinbase target at $400, citing resilient trading volumes despite Bitcoin’s correction.
Crypto Miners May Rebound
- Cantor Fitzgerald analyst Brett Knoblauch believes the crypto bull market could last another 12-16 months, supporting Bitcoin mining revenues.
- Miners like MARA, CORZ, and CLSK trade at reasonable valuations, with expectations for strong revenue and EBITDA growth.
- Miners are also pivoting to AI-driven data centers, leveraging advanced cooling & energy infrastructure.
Outlook: A Temporary Dip?
- Bitcoin-related stocks remain volatile, but with the SEC embracing Bitcoin ETFs, sentiment may shift.
- Coinbase and Robinhood are well-positioned to recover, assuming Bitcoin prices stabilize.
Summary:
- Bitcoin's 20% drop has led to a selloff in crypto stocks, but analysts see a rebound ahead.
- SEC’s policy shift & Trump’s pro-crypto stance improve regulatory outlook.
- Coinbase, Robinhood, and crypto miners remain undervalued, presenting a buying opportunity.
- Miners diversifying into AI infrastructure could add long-term value.
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