KUALA LUMPUR, Nov 12 (Bernama) -- Bursa Malaysia extended its losing streak for a fourth consecutive session, closing lower on Thursday amid continued broad-based selling that weighed on market sentiment, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 9.23 points or 0.57 per cent to 1,585.96 from Wednesday's close of 1,595.19. The benchmark index opened 3.61 points lower at 1,591.58 and fluctuated between an intraday low of 1,583.66 and a high of 1,592.89 throughout the day. Market breadth remained negative with losers thumping gainers 799 to 318, while 476 counters were unchanged, 1,181 untraded and 13 suspended. Turnover climbed to 3.06 billion units valued at RM2.56 billion compared with yesterday’s 2.90 billion units valued at RM2.33 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.
Comments
Post a Comment