JPMorgan predicts bitcoin mining stock cooldown: CoinDesk

Mining stocks tumbled in the first few hours of bitcoin spot ETF trading on Thursday

article-image

JPMorgan Chase CEO Jamie Dimon | lev radin/Shutterstock modified by Blockworks

share

A research note from banking giant JPMorgan says bitcoin mining stocks may be “due for a breather” as bitcoin spot ETFs begin trading, CoinDesk reported. 

Bitcoin and a host of stocks that tend to follow its price movements were red-hot in the months leading up to yesterday’s SEC approval. It remains unclear if the approval itself will amount to a “sell the news” event or if the assets have further to climb. In the eyes of JPMorgan analysts Reginald Smith and Charles Pearce, mining stocks in particular should slow down but will “track bitcoin prices over the coming weeks.”

Read more: Bitcoin ETF starting gate: A look at the spot funds set to start trading today

In the first few hours of spot bitcoin ETF trading, the pair were proven partially right. Bitcoin mining stocks experienced a sell-off after weeks of positive sentiment. Marathon and Riot fell 13%, Bitfarms fell 12%, and Cleanspark and Terawulf both fell 8% by noon EST.

Bitcoin did not track with mining stocks, though, climbing past $49,000 Thursday morning and finding itself up overall on the day despite a pullback.

Read more: Bitcoin price rockets past $49k as spot bitcoin ETFs begin trading

The JPMorgan note said mining stocks may be momentarily overextended, trading at near all-time highs relative to their reserves and estimated mining income. The report also said mining stocks could face tailwinds from investors leaving mining stock positions to get more direct bitcoin exposure via the new ETFs, CoinDesk reported. 

Nevertheless, JPMorgan’s analysts wrote that mining company fundamentals remain unchanged, and the “stars are aligning for a big year in bitcoin mining.” Valkyrie’s Bitcoin Miners ETF, which has exposure to a host of mining stocks, is up 176% in the past year.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Kaito stands out as a rare monetization success in AI, generating ~$20.8M ARR from Yapper Leaderboards and Kaito Pro. Already the default platform for token launches with 43 pre-TGE leaderboards, it is expanding into the post-TGE market with 49 major projects live. The Capital Launchpad has raised $12.7M in two weeks, adding $630K in fees. With underpriced staking yields and a defensible data moat, Kaito is positioned as the clear leader in InfoFi.

article-image

Tether’s ascent as a top-10 foreign buyer of Treasurys signals stablecoin issuers are no longer just liquidity users

article-image

Hot markets have made for big paydays this year

article-image

Gold is proof that belief sustained over millennia creates real value; crypto is hoping to take a shortcut

article-image

Fears that rollups would abandon Ethereum haven’t materialized — instead, chains like Celo and Lisk have migrated the other way

article-image

Crypto IPO hype has room to run as Bitwise exec says there remains a “massive shortage” of public crypto firms

article-image

The state-backed token is being deployed across 7 blockchains and will direct profits toward education