Speculators and cryptocurrency traders might not be the only ones that are benefiting from the current Bitcoin rally. Many stocks of Asian companies have rapidly risen today, as Bitcoin managed to hit a new all-time high.
Asian Company Stocks are Rallying
The whole financial and technology world is watching today, as the popular decentralized cryptocurrency Bitcoin managed, for the first time to reach the astonishing price of $11,517 and a total market cap valuation of over $176 billion. Ethereum, another cryptocurrency that has also rapidly risen in the last couple of days, reached a new all-time high price of $522 and a total valuation of over $45 billion on Wednesday. In contrast, the total cryptocurrency market has currently reached the valuation of over $309 billion.
Cryptocurrency traders and investors aren’t the only ones that are excited by this rally. Asian technology stocks have also risen in the last couple of months. The main reason behind that is the current boom of the cryptocurrency mining market. Stocks of Asian chip manufacturers have rapidly grown in the anticipation that future demand for cryptocurrency mining equipment would rise. The Taiwan Semiconductor Manufacturing Co Ltd is one of the Asian companies that has seen its stock prices rise over the last couple of weeks.
The Upcoming Rise of Cryptocurrency Mining
As the current cryptocurrency market is astronomically expanding, many experts predict an enormous rise in demand for more and better mining equipment. In a recent article by Bloomberg, a semiconductor analyst at Sanford C. Bernstein & Co., Mark Li, described the current situation:
There’s an arms race. The technology used is pretty intensive and you need very speedy chips to be able to mine the coin in the system.
The article also reports that several Asian companies are planning to start their own cryptocurrency mining operations. One of these companies is the Japanese GMO Internet Inc. which is planning to deploy its mining farm in 2018 with seven-nanometer chips. It is definitely exciting to see that more and more companies are trying to get into Bitcoin and the cryptocurrency mining business.
What are your thoughts on the rise of Asian company stocks? Do you think that Bitcoin was the main cause behind that? Let us know in the comments below!
Images courtesy of Pixabay, Reuters/Issei Kato