Why Canaan, Ebang, and The9 Were Soaring This Week
Shares of several leading cryptocurrency stocks soared this week. Mining hardware makers Canaan (NASDAQ: CAN) and Ebang International (NASDAQ: EBON) peaked on Thursday at week-long gains of 36.9% and 25.3%, respectively. Digital currency miner The9 (NASDAQ: NCTY) joined the party with a 38.4% jump on Friday afternoon. All of these companies are extremely sensitive to token prices and general interest in Bitcoin (CRYPTO: BTC), and the leading cryptocurrency stabilized its pricing this week after a tumultuous May.
Bitcoin started May with prices just below $60,000 per token. That hefty price tag was cut to roughly $35,000 per token by the end of last Friday. Tesla (NASDAQ: TSLA) CEO Elon Musk was backing down from his public Bitcoin support last month, arguing that the cryptocurrency is taking a heavy environmental toll due to coal-powered mining operations in China, and his words always carry a lot of weight with crypto enthusiasts.
Crypto traders were aching for stability and they got it this week. As of 2 p.m. EDT today, Bitcoin prices had gained 3% over the last seven days. Musk was approached by several leading cryptocurrency analysts and crypto-friendly business leaders, who pointed out that a lot of the crypto mining that goes on today is powered by alternative energy sources such as solar panels and hydropower.
Source Fool.com