For Wall Street, since the end of the Second World War, September has been one of the most volatile months to negotiate in a year. To form an idea, in the month of September since 1945, the S&P 500 has fallen at an average rate of 0.7%. This is the worst performance among all the months. It is not obvious yet what September from 2023 would be like, but with no clear signal coming in from the Fed about the path forward, one can only guess.
In the world of crypto, Bitcoin (BTC) has mirrored the September impact from the traditional marketplace. Over the last 10 years, Bitcoin has only posted two positive September months, and that too with modest gains. On average, Bitcoin loses nearly 6% of its value in September.
However, no one has ever been able to put a finger on the root cause of the problem, and the September phenomenon has been broadly classified as a market psychosis, where enough investors believe in the idea of the bear market in the month and thus sell off their stocks. This sell-off results in a dip in prices, which further reinforces the idea of the September effect.
So, as we approach September, it might be prudent to follow a few major stocks exposed to BTC and gauge the September effect.
Stronghold Digital Mining, Inc. SDIG: This is a crypto asset mining company that focuses on mining Bitcoin in the United States. Stronghold Digital’s expected earnings growth rate for the current year is 97.7%. The Zacks Consensus Estimate for its current-year earnings has improved by 68.2% over the past 60 days. SDIG currently carries a Zacks Rank #3 (Hold).
HIVE Digital Technologies Ltd. HIVE: This cryptocurrency mining company operates in Canada, Sweden and Iceland. It engages in the mining and sale of digital currencies. Hive Digital’s expected earnings growth rate for the current year is 72.3%. The Zacks Consensus Estimate for its current-year earnings has improved by 39.4% over the past 60 days. HIVE currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CleanSpark, Inc. CLSK: This is a company that mines and develops sustainable infrastructure for Bitcoin. Cleanspark’s expected earnings growth rate for next year is 89.1%. The Zacks Consensus Estimate for its current-year earnings has improved by 5.2% over the past 60 days. CLSK currently carries a Zacks Rank #2 (Buy).
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