$MARA Banking On The Bitcoin RallyThe House Financial Services Committee recently passed a bill for crypto regulation which may see cryptocurrencies running in the coming weeks. The reason for this anticipated run is the authenticity and sense of security this bill would add to cryptocurrencies. Since Bitcoin is the world’s largest cryptocurrency, it is likely to be impacted the most by this bullish news which could see other Bitcoin miners like Marathon Digital Holdings, Inc. (NASDAQ: MARA) run in sympathy. For this reason, MARA stock could be one to watch closely over the coming weeks as more updates become available.
MARA Fundamentals
Regulating Crypto
As things stand, the recent crypto regulation bill is a strong catalyst for the crypto industry since it remedies overarching concerns related to the crypto market. Chief among these concerns is security as the crypto market is currently riddled with scams, fraud, and sudden rug pulls. Once renowned institutions like Celcius, FTX, and Terraform have soured the reputation of the crypto market, causing many to question the validity of Crypto as a secure form of investment.
This bill offers the market guardrails in the form of oversight by the SEC and CFTC in order to prevent such incidents from occurring, which is why if the bill is codified, cryptocurrencies may witness an influx of new users resulting in the rejuvenation of the market. Having said that, the fact that the bill is bipartisan makes it very likely to pass a House vote which would be bullish news for the crypto sector. In this way, Bitcoin mining stocks including MARA stock may see substantial runs with more updates regarding the fate of this bill.
Another important aspect of this bill is that it improves the authenticity of cryptocurrencies as a form of investment. Recently, the crypto market has been experiencing multiple wins as more and more institutions are utilizing it as a form of investment as shown by Blackrock’s application for a spot Bitcoin ETF. If the ETF gets approved, it would mark the start of a bullish run in the crypto sector and Bitcoin miners like MARA stock may prove to be a way to gain exposure to the sector.
Shareholders Meeting
Currently, MARA is poised to have its shareholders meeting on July 27 where shareholders will vote on a proposal to raise the company’s authorized shares from 200 million to 500 million which is likely to be approved by shareholders. While the expected dilution may impact the stock price in the short-term, it would allow the company to expand its miners to reach its targeted hash rate which would be pivotal for the company’s growth prospects.
Technical Analysis
MARA stock is in a neutral trend and is trading in a sideways channel between its support at $16.23 and its resistance at $18.83. Looking at the indicators, the stock is above the 200 and 21 MAs which is a bullish indication, while it is testing the 50 MA as resistance. Meanwhile, the RSI is neutral at 52 and the MACD is neutral as well.
As for the fundamentals, the crypto sector may see a run soon following the House’s financial services committee’s crypto regulation bill. Since MARA stock provides investors with exposure to Bitcoin’s price movement, the stock may run over the coming weeks along with Bitcoin as more updates regarding the bill become available.
MARA Forecast
Given the recent crypto regulation bill, the crypto sector could witness a strong run over the coming weeks as regulating cryptocurrencies continues to gain steam. Given that Bitcoin is the world’s largest cryptocurrency, it may be poised to witness substantial gains on any positive updates regarding the bill. In this way, crypto mining stocks may run in sympathy since they move in tandem with Bitcoin – making the MARA stock forecast bullish this year. However, the stock may witness a slight pullback in the near term since the company may dilute to expand its miners if shareholders approve the proposal to raise the AS in the shareholders meeting on July 27.
