- Riot Platforms share price has surged by more than 93% from its November lows.
- The company is benefiting from the rising Bitcoin prices.
- It is also seeing tailwinds as the Bitcoin Ordinals craze continues.
Riot Platforms (RIOT) stock price continued rising even as Bitcoin price remained in a consolidation phase. The shares jumped to a high of $17.72 on Tuesday, its highest point since August 4th. They have risen by more than 93% from their lowest point in November.
Bitcoin Ordinals NFT surge
Bitcoin mining stocks have done well this year as most of them outperformed the price of BTC. Key companies like Marathon Digital, Cipher Mining, and Hut 8 Mining have risen by more than 400%.
This performance is in line with how these stocks perform over time where they rise at a faster pace when Bitcoin is rising. Similarly, they retreat sharply when Bitcoin is in a downward trend.
The theory is that their profitability rise when Bitcoin is rising. Indeed, data by Coin Metrics shows that mining companies have seen their profits jump to the highest point in over two years. Total revenue jumped to over $2.5 billion in the fourth quarter.
In addition to the Bitcoin price jump, Riot Platforms stock price is surging because of the ongoing Bitcoin Ordinals craze. Data compiled by CryptoSlam shows that the number of Ordinals buyers and sellers has risen to over 256k and 229k.
In total, the sales volume has risen to over $1.56 billion, which is a remarkable since Ordinals debuted this year. In December alone, total sales have risen to over $618 million up from $375 million in the previous month. In a note, an analyst said:
“These protocols are being released at breakneck speeds, with token-minters eagerly bidding on block space to get in on the ground floor of new vehicles for speculation.”
The most recent results showed that Tiot Platforms mined about 18.4 Bitcoin per day in November, a 6% increase from the previous month. It made $19.6 million selling some of its coins and has taken measures to boost its mining results. For example, it recently bought hundreds of Bitcoin mining hardware from MicroBt.
There are two key catalysts for Riot Platforms. First, the Fed has pointed to rate cuts in 2024, which is a positive sign. In most periods, Bitcoin mining stocks tend to do well when rates are falling.
Second, while Bitcoin halving will make it difficult to mine, there is a likelihood that it will push BTC prices higher.
Riot Platforms stock price forecast
The daily chart shows that the RIOT share price has been in a strong bullish trend in the past few weeks and is now hovering near its highest point since August 9th. The 50-day and 25-day moving averages have made a bullish crossover while the Relative Strength Index (RSI) is nearing the overbought point.
Therefore, the outlook for the RIOT stock price is bullish, with the next point to watch being the YTD high of $20.70, which is about 24% above the current level.
