KUALA LUMPUR, Oct 20 (Bernama) -- Bursa Malaysia’s benchmark index edged higher at the close as bargain hunting emerged following Monday’s sharp sell-off, although it narrowly failed to reclaim the 1,600 level, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 3.83 points, or 0.24 per cent, to 1,599.58 from Monday’s close of 1,595.75. The index opened 3.18 points lower at 1,592.57, marking its intraday low, and reached an intraday high of 1,602.83 in early trading. On the broader market, decliners outnumbered gainers 751 to 331, while 499 counters were unchanged, 1,259 untraded and 10 suspended. Turnover rose to 2.86 billion units worth RM2.42 billion against Monday’s 2.49 billion units worth RM2.38 billion.
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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