- Marathon Digital and Riot Platforms stocks have consolidated in the past few days.
- The SEC launched major lawsuits against Coinbase and Binance this week.
- Bitcoin has been spared from SEC’s ire.
Marathon Digital stock price moved sideways this week as investors focused on the ongoing battle against cryptocurrencies continued. MARA shares were held steady at $9.85, where it has been in the past few weeks. This price is lower than the year-to-date high of $12.83. Similarly, RIOT stock price was trading at $10.53, lower than this year’s high of $14.40.
Bitcoin seems safe for now
The SEC filed two important lawsuits this week that will have a major impact on the crypto industry. One of the main themes, which Gary Gensler clarified in his interview with Bloomberg, was that these exchanges were offering unregistered securities to American citizens. The SEC believes that most tokens like MATIC and ApeCoin are securities, which should comply with securities laws.
Bitcoin, on the other hand, seems safe in this situation since it is not a financial security. Some regulators believe that Bitcoin is a commodity that is similar to gold, one of the biggest safe haven assets in the world.
Therefore, Bitcoin seems to be a safe coin for now, meaning that companies in the sector are not doing anything illegal. This explains why the BTC price has held quite steady this week. Its current price is the same as where it was when the Binance lawsuit was unveiled.
Bitcoin mining stocks like Marathon Digital and Riot Blockchain have also held quite steady in the past few days. In most cases, you would expect these stocks to plunge after the crypto lawsuits. The view is that these companies will continue mining and selling their coins freely.
Another important Marathon Digital news is that the company entered a securities purchase agreement for 15,000 shares. It hopes to raise over $14 million through this share sale. The company also appointed a new CFO and reported an increase in the number of mined coins in May.
Marathon Digital stock price forecast
The daily chart shows that the MARA stock price dropped to a low of $3.02 in January this year. It then bounced back and reached a high of $12.83 in May as Bitcoin price recovered. Now, Bitcoin price is in a consolidation mode and is trading slightly above the 50-day moving average. It seems like the recent bullish trend has ended which coincides with the performance of Bitcoin.
Therefore, the outlook for the MARA share price is neutral with a bullish bias. A bullish breakout will be confirmed if it moves above the year-to-date high of $12.83. If this happens, the next level to watch will be at $18.52, the highest level in August last year.
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