KUALA LUMPUR, Sept 28 (Bernama) -- Bursa Malaysia ended marginally lower on Monday amid selling activity as the market lacked fresh catalysts to spur investors’ buying interest, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.60 points, or 0.09 per cent, to 1,670.02, from Friday’s close of 1,671.62. The benchmark index, which opened 0.93 of-a-point higher at 1,672.55, moved between 1,668.61 and 1,674.11 throughout the trading session. Market breadth was negative as losers surpassed gainers 748 to 388, while 517 counters were unchanged, 1,271 untraded and 91 suspended. Turnover slipped to 3.11 billion units worth RM2.40 billion from 4.07 billion units valued at RM2.69 billion on Friday.
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.
Comments
Post a Comment