Though many technology and cryptocurrency stocks have achieved massive success in 2024, with MicroStrategy (NASDAQ: MSTR) being a prime example as it is up 420.42% year-to-date (YTD), few have matched the feat accomplished by one nano-cap Bitcoin (BTC) miner.
BTC Digital Ltd. (NASDAQ: BTCT) entered an incredible surge during the November 12 session and rallied 316.67% within a single session from its previous closing price of $2.52 to $10.50. At one point on Tuesday, the rally appeared even more remarkable as BTCT shares rose to about $17.
Additionally, the gains don’t appear to have been a one-day oddity – though their longevity is definitely uncertain – as the Wednesday pre-market drop of 15.43% did not wipe the rally, and BTC Digital’s stock price at press time is at a relatively high $8.88.
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Why is BTCT stock up 300% in a single session
The BTCT stock rally is as mysterious as it is impressive. Indeed, BTC Digital shares have been on a decisive downtrend since 2020, and the all-time chart reveals they fell a total of 99.88% by the market’s close on November 12, 2024.
Furthermore, there is no discernable trigger for the Tuesday rally, meaning that it may be driven by a wide range of factors, from outright manipulation to meme-stock-like hype.
The company’s low market capitalization of just over $27 million does showcase why the stock was even able to make a 300% move in a single session as firms with such a low valuation tend to be highly volatile.
Could the BTC rally alone have driven the BTCT stock rally?
The simplest explanation might, however, come from the fact that BTC Digital is, as the name implies, a Bitcoin miner.
The world’s premier cryptocurrency – and many other major digital assets – have been in a dizzying rally since Donald Trump was declared winner of the 2024 presidential elections.
BTC has, for example, surged 27.17% – $18,747 – between November 5 and press time on November 13 from approximately $69,000 to $87,747. The coin has even reached a higher price recently as it attempted – and so far failed – to climb above a critical resistance level at about $90,000.
All-in-all, Bitcoin reached and breached multiple new all-time highs (ATH) since Trump won and is, in total, 90.64% in the green YTD.
Such a surge in the cryptocurrency market could have led to investors discovering BTCT shares – and their near penny stock status – and wagering on a rally driven by Bitcoin’s own rocketing. BTC Digital’s low valuation would have ensured that it wouldn’t even take too many investors to drive massive volatility.
Featured image via Shutterstock
