what happened
Canaan (can 5.08%)one of the little universes born by my company Bitcoin (Bitcoin -0.18%)has been a direct beneficiary of that cryptocurrency’s rally over the past few days. I’m done.
So what
We must be careful not to tag the recent market moves of Bitcoin and its ilk as a rally. It’s a shift that is (often very) profitable for speculative investments such as these.
In any case, such asset changes have an immediate effect on Bitcoin. That’s because it’s far more important, closely followed, and influential.
So when Bitcoin sneezes, Bitcoin miners such as Canaan catch a cold. The flip side of this, of course, is that when the market heats up on the coin, Kanan and his companions like it too.
So
Canaan isn’t just about mining bitcoin out of digital soil. We also sell technology that allows others to do their own mining. So for stocks, the “bitcoin effect” is often amplified, which is the main reason stocks bounced higher than Bitcoin’s value on Monday. It’s also why the major cryptocurrencies are likely to stay on track if they maintain their momentum.
