Just when the people were starting to take a sigh of relief, thinking that this crypto bloodbath had finally come to an end, FTX Group filed for bankruptcy. This year showed no mercy to anyone in the digital asset space. From exchanges to miners, all were left with a sour taste in their mouth. One of the crypto mining companies, Riot Blockchain (NASDAQ: RIOT) was seeing their share price falling during the past few days. Currently, RIOT stock was trading at $4.02 at the publication time.
A Cold Year For Crypto
Crypto miners were facing issues from Kazakhstan regulators. Recently, the authorities issued corporate tax for Bitcoin miners in the country. Last year, the nation saw a heavy influx of Chinese miners into the nation. In January 2022, grid operators refused to offer electricity to them, cutting the power connections for crypto mines.
The fall of FTX impacted Core Scientific (NASDAQ: CORZ), another crypto mining company, the board started to think about filing bankruptcy. But thanks to the organization’s biggest shareholders who came to their rescue as they offered $72 Million to them.
Ted Cruz, US Senator, recently appeared during Texas Blockchain Summit 2022 and talked about how the crypto mining industry can be beneficial for the nation’s development. He highlighted how their cheap and abundant energy sources makes the location a perfect place for mining organizations to set up their shops.
Riot Stock Price Analysis
Riot Stock has lost over 80% of their value since this year’s beginning. The share traded at yearly high of $24.63 in January 2022. The chart shows an alt bat pattern from January to March 2022. The price then retracted to create a sharp decline which ended in June 2022. It consolidated throughout the month and saw another surge which lasted till August 2022.
The company shares are currently in a neutral zone where both the buyers and sellers have the potential to dominate the price. Despite the crypto winter, analysts at TradingView are optimistic regarding Riot Stock. They believe that the share value can grow by a whopping 287% in a year, translating it to $15 per share.
According to CNBC, FTX fall can potentially reshape the crypto industry. The havoc has already alarmed the authorities which indicates tightening regulations over the space, which can deliver a negative effect on the financials of the companies. It may also push the industry to come up with new innovations. Marieke Flament, Near Foundation’s CEO, said that “I don’t think all dominoes have fallen from the FTX contagion”
Disclaimer
All the views given in the article solely belong to the writer only and should not be taken as investment advice. We are not responsible for any financial loss born by the reader.
Source: https://www.thecoinrepublic.com/2022/12/20/riot-stock-ends-the-bear-streak-after-weekend-rises-by-over-5/