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Here's What's Happening With Our Top Bitcoin Stocks: Bitcoin Investment Trust (OTCMKTS:GBTC) And MGT Capital Investments Inc. (OTCMKTS:MGTI)

Here's What's Happening With Our Top Bitcoin Stocks: Bitcoin Investment Trust (OTCMKTS:GBTC) And MGT Capital Investments Inc. (OTCMKTS:MGTI)
Written by
Chris Sandburg
Published on
September 28, 2017
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Bitcoin is back on the way up. After what happened in China (the bitcoin exchange ban earlier this month) and having seen price drop from just shy of $5000 apiece to eventually bottom out around the $3000 mark, many expected a longer-term downside shift in the price of bitcoin and, in turn, the value of those companies associated with the space.As it turns out, the dip proved far shorter lived than most had expected and price is now hovering in and around the $4500 mark – just of highs and very much riding a bullish wave.Over the last six months or so, we have tried to pick some of the top exposures in the space for traders and investors looking to benefit from volatility in the cryptocurrency space but do so without having to buy bitcoin.These companies generally track the price of the underlying asset, so, against the backdrop of a return to the upside, let's take a look at our top picks and see how they are performing.Bitcoin Investment Trust (OTCMKTS:GBTC)Bitcoin Investment Trust is one of the more reliable exposures out there. It is an ETF type entity (in the setup, but not from a regulatory perspective) that buys bitcoin and sells shares in itself in order to offer buyers exposure to price rises in the space. GBTC Daily Chartin line with this business model, Bitcoin Investment Trust took a hit as bitcoin declined, bottoming out around $520 apiece mid-September. Over the last couple weeks, however, the stock has turned around and now goes for just short of $750 a share. Assuming bitcoin continues to appreciate, we expect this one to quickly recover to end of August highs above $1000 and, moving into the end of 2017, beyond.Of note, Bitcoin Investment Trust just withdrew an application with the SEC for registration as a regulated ETF and the listing on NYSE Arca. This is the result of two similar applications already having been turned down as opposed to anything fundamental associated with the stock, so it shouldn't be seen as a negative development.Our previous coverage of GBTC is here. MGT Capital Investments Inc. (OTCMKTS:MGTI)When McAfee repositioned MGT as a bitcoin mining company towards the end of last year, a large portion of the markets denounced the move. We suggested that it could be a smart one, however, especially if the price of bitcoin continued to rise. This is what happened and markets have revalued MGT in line with the price of the underlying asset.The company announced an equity purchase agreement of up to $35 million mid-September and, more recently, announced an uplisting to OTCQB. Sure, it's still an OTC exchange but it's a step up and move in the right direction.Regardless of the exchange it's listed on, however, what's really moving this one is the price of bitcoin. MGTI Daily ChartMGT bottomed out around $1.83 a share at the same time as the above-mentioned Bitcoin Investment Trust bottomed out and, again, has since recovered to trade at current prices of $2.84 apiece.As far as future price action is concerned, this company seems to be all about catching momentum through various press releases and media appearances by McAfee. He recently appeared on CNBC to denounce the opinion of J.P. Morgan head that bitcoin is a fraudulent asset and this served to spike speculative attention in MGT. If the company can maintain its media presence (and given how much bitcoin is in the media right now, this shouldn't be too much of an uphill task) then it can almost certainly and in parallel maintain the speculative interest of outside investors, translating to a steady inflow of speculative volume.Key resistance to watch from this one is $3.95, recorded at the end of August. If bitcoin continues to appreciate, MGT should have no problem breaking through to four dollars a share over the next month or so.Our previous coverage of MGTI is here. We will be updating our subscribers as soon as we know more. For the latest updates on the bitcoin space, sign up below!Image courtesy of fdecomite via FlickrDisclosure: We have no position in any of the securities mentioned and have not been compensated for this article.

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