Bitcoin's modest rebound over the weekend appears to have stalled as Monday trading began. JPMorgan updated its views on several bitcoin miners, including upgrades for Cipher Mining (CIFR) and CleanSpark (CLSK).
Bitcoin peaked at just above $88,000 on Sunday, rebounding from around $80,000 early Friday, but dipped back toward $86,600 by Monday morning. The price of bitcoin is now down more than 7% this year.
Ethereum recovered near $2,900 overnight but slid back to $2,800 Monday morning, with a nearly 16% decline so far in 2024.
Spot bitcoin exchange-traded funds (ETFs) recorded $1.22 billion in outflows last week, marking the third consecutive week of outflows. November has seen $3.55 billion in outflows, though Friday brought a slight reprieve with $238.4 million in inflows. BlackRock's iShares Bitcoin Trust (IBIT) was the only ETF with outflows on Friday at $122 million, contributing to a weekly outflow of $1.09 billion and a November total of $2.2 billion.
David Morrison, senior market analyst at Trade Nation, noted little appetite for another Federal Reserve rate cut in December, but New York Fed President John Williams suggested rates could fall "in the near term," boosting odds of a 25-basis point cut to 71%. Morrison highlighted that November is proving challenging for markets, with concerns over the artificial intelligence industry, circular investments, accounting procedures, and chip lifespans. Trading volumes are expected to drop this week due to the Thanksgiving holiday.
JPMorgan Upgrades Two Miners
JPMorgan upgraded CleanSpark to overweight from neutral, citing the recent pullback and its 200 megawatts of critical IT capacity at a newly-acquired Texas site. The firm maintained a $14 price target on CLSK stock, noting that high-performance compute deal activity increases conviction in bitcoin miners.
JPMorgan also upgraded Cipher Mining to overweight from neutral, pointing to a 45% decline from recent highs as a "nice entry point." The firm raised its price target on CIFR stock to $18 from $12, expecting additional high-performance compute deals to drive upside.
JPMorgan raised its price target on Iren (IREN) to $39 from $28, citing high volumes of HPC deal activity, but kept an underweight rating.
Analysts Cut Price Targets
JPMorgan cut price targets on Mara Holdings (MARA) to $13 from $20 and Riot Platforms (RIOT) to $17 from $19, citing lower bitcoin prices and higher share counts, while maintaining overweight ratings.
Canaccord cut its price target on Bullish (BLSH) to $50 from $68, keeping a buy rating, and expressed optimism about the Peter Thiel-linked crypto exchange's progress in Q3 on business model and asset management expansion.
Stock Action
IBIT and other spot bitcoin ETFs rebounded about 1.3% early Monday.
Cipher Mining shares jumped nearly 12%, CleanSpark surged almost 7%, and Iren stock advanced more than 6%.
Despite price target cuts, Mara advanced 3.2% and Riot stock surged 4% on bitcoin's gains.
Bullish stock rose about 1%.
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