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The financial markets have turned volatile of late, as risk aversion is exerting downward pressure on asset classes such as equities. Stocks, which navigated through the COVID-19 pandemic fairly well, have come under pressure amid rate hikes fears.
Against this backdrop, the quest will be to spot one good investment that could prove to be a safe bet.
Cryptos Rally Loses Steam: The crypto universe was on a rally mode from late-2020 until mid-April 2021, as the world slowly and steadily emerged out of the COVID-19 pandemic. Most digital currencies clocked in spectacular gains during this time.
Subsequently, cryptocurrencies retreated and bottomed out in mid-July before taking a leg up. Even amid the volatility, cryptos are trading with noteworthy gains for the one-year period.
Over the past year, Bitcoin (CRYPTO: BTC) gained about 278%. Incidentally, the most valued crypto hit a peak of $64,863.10 in mid-April before pulling back and is currently trading north of the $40,000 level.
Ethereum (CRYPTO: ETH), the most valued alt-coin, is up about 680% over the past year. The crypto peaked at $4,362.35 on May 12, but has nearly halved since then. It is currently trading around the $2,800 level.
XRP (CRYPTO: XRP), part of Ripple Labs, is up about 167% in the past one year and is currently trading around 91 cents.
Related Link: Is MARA a Good Buy
A Crypto Play That Outperformed The Cryptos: Marathon Digital Holdings Inc (NASDAQ:MARA), which mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets, is standing head and shoulders over most cryptocurrencies in terms of one-year returns.
From a mere $2.02 in late-September 2020, Marathon Digital marked its entry into double-digit territory on Dec. 21. The miner rallied steadily until early April 2021, with the stock hitting a multi-year high of $57.75 on April 6.
The pullback that ensued saw the stock retreating all the way to $18.32 on May 13, a peak-trough decline of about 68%.
Marathon has staged a steady recovery since then, and notwithstanding the hiccup seen in the middle of the year, the stock is still up 1,521% over the past year.
In a note released in mid-September, B. Riley analyst Lucas Pipes maintained a Buy rating on Marathon shares and upped the price target from $54 to $87, premised on slower-than-expected increase in the total network hash rate following the crackdown on digital asset mining in China.
At last check Wednesday at market close, Marathon was down 6.53% at $30.61.
Related Link: How Much Do Bitcoin Mining Companies Make — And What Does China’s Ban Mean For The Market?
Photo: Pete Linforth from Pixabay
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