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While the sudden rise of Bitcoin is catching the world's attention, it's not just the crypto-money investment that returns to the light. Any company badociated with BTC knows a green day and, of course, Riot Blockchain (RIOT) is no exception. Despite the loss of many of its daily earnings, the crypto-mining group is still up more than 20%, outperforming most crypto-currencies.
Blockchain Riot lives and dies with Bitcoin price
Riot Blockchain has exceeded 20% in response to the similar surge in the cryptography market. | Source: Yahoo Finance
Most of the articles published in major financial media insist that no one knows about the rebound of the Bitcoin price. Anyone who has read this article on CCN yesterday knows that BTC / USD was about to break an important technical level. In an illiquid market where everyone is watching the dynamics and the action of prices far more than the fundamentals, a mbad of upward orders would naturally follow the market aggressively.
Understanding what would make Riot Blockchain's appetite even easier. These are mostly cryptocurrency mining companies, but have recently announced their intention to launch an exchange. In the end, this means that Nasdaq-listed Riot earnings and revenues are based not only on price, but also on overall business appetite. Bitcoins and Altcoins are important for their bottom line.
'Bitcoin' hit # 2 on Google Trends
If you are thinking of starting a cryptocurrency exchange, what is your main fundamental? Probably, interest in space in general.
Given that Bitcoin was the number two ranked Google trends in the United States, interest seems ready to explode. Obviously, a drop in price could immediately cancel that interest. I would venture to say that the speed with which BTC came back to the headlines could be evidence that the appetite was just hibernating and that it had never gone off.
Risky exposure to cryptocurrency on the stock market
Riot Blockchain has had its share of controversy, but seems to cross them unscathed. It has undeniably registered huge gains in recent weeks. For investors looking for a high reward and high risk currency exposure in the digital market, it is undoubtedly the most prominent game.
Blockchain Riot Listed at Nasdaq is always a booming game
The nature of Bitcoin mining (or any mining operation from elsewhere) is extremely cyclical. For the same reason, non-diversified companies that deal exclusively with commodities are still volatile. RIOT is a great game when everything is fine and just as bad when things go wrong. To be a long-term investor, you would probably want to see some diversification in the field of conventional blockchain, away from cryptocurrency. Assuming you do not think Bitcoin will go straight to the moon.
Until something changes significantly, Riot Blockchain will remain a risk game in a bull market with rising prices and a warning in a bearish context.
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