The Business & Technology Network
Helping Business Interpret and Use Technology
S M T W T F S
 
 
 
 
 
1
 
2
 
3
 
4
 
5
 
6
 
7
 
8
 
9
 
 
 
 
 
 
 
 
 
 
 
 
 
22
 
23
 
24
 
25
 
26
 
27
 
28
 
29
 
30
 

Bitcoin miners combined $28 billion market cap potentially undervalued compared to BTC trading volumes

DATE POSTED:October 22, 2024

Bitcoin’s daily trading volume is regularly surpassing the total market capitalization of public Bitcoin mining companies, amid concerns public miners are overvalued.

On Oct. 21, Bitcoin recorded $37 billion in spot trading volume, maintaining a trend between $20 billion and $40 billion throughout 2024. Bitcoin derivative’s open interest has also reached an all-time high of around $40 billion, with nearly double that in trading volume, according to data from Coinglass.

 Bitcoin Visuals)Bitcoin spot volume (Source: Bitcoin Visuals)

Despite opinions that mining stocks are overvalued from a fundamental perspective, market forces suggest these valuations may increase further, as noted by D.R. Lewis. He notes the entire public Bitcoin mining sector holds a market capitalization of approximately $28 billion. These companies collectively produce close to 30% of Bitcoin’s supply at scale.

The daily transactional volume on Bitcoin exchanges exceeding the total market cap of miners highlights a significant disparity in the Bitcoin miner market.

The post Bitcoin miners combined $28 billion market cap potentially undervalued compared to BTC trading volumes appeared first on CryptoSlate.