For Bitcoin’s (BTC) mining companies, 2022 has been a difficult year given the drastic drop in cryptocurrencies in the market. However, shares jumped sharply on Wednesday, suggesting the possibility that investors have begun to take advantage of the low prices.
According to a report by Cointelegraph, shares of Bitcoin mining companies rose between 12% and 24% in a single day. Those experiencing the biggest rebound were Canada’s Bitfarms (BITF) and Cathedra Bitcoin (CBIT), followed by U.S.-based Core Scientific (CORZ) and Marathon Digital Asset Holdings (MARA).
The rebound in the shares relieves Bitcoin miners after a shocking drop of more than 70% since November.
However, the small respite of a rebound for these companies does not imply that they have recovered. The report indicates that BITF is still trading as much as 86% below its last peak, while MARA, CORZ, and CBIT are trading down between 80% and 93%.
The risk has not yet been overcome. In fact, the risk could be greater. According to analysts quoted by Cointelegraph, mining stocks could fall further given the prolonged downturn in the market. The rebound could result from the enthusiasm of investors who bet on companies when their value is low.