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Canadian stocks opened on Friday October 15 on a good note. V Composite TSX Index rose to a fresh intraday high of 20,923, up about 0.5% over the day. Consistent rallies in oil and base metals prices, unexpectedly better-than-expected US retail sales data released this morning, and strong corporate earnings are driving TSX shares higher. Here are the main driving forces behind the Canadian stock market this afternoon.
TSX Rally Bitcoin Mining Shares
The sharp rise in bitcoin prices against the US dollar has led to a rise in cryptocurrency stocks on the TSX today. Bitcoin is up almost 5% this morning and for the first time since April 18, 2021, it crossed the key psychological level of $ 60,000.
Investors’ expectations that the US regulator would soon approve the first Bitcoin exchange-traded fund (ETF) in the US market led to the growth of bitcoins. According to Financial Times According to the report, the ProShares Bitcoin Strategy ETF and Invesco Bitcoin Strategy ETF may start trading on Tuesday and Wednesday next week, respectively.
As a result, the Canadian bitcoin mining company Hut 8 Mining Shares of (TSX: HUT) (NASDAQ: HUT) are up more than 13% today at $ 13.05 a share. Similarly, shares of cryptocurrency companies Bitfarms (TSXV: BITF) (NASDAQ: BITF) and Blockchain Hive (TSXV: HIVE) (NASDAQ: HVBT) are up 4% every day.
In the past year, companies have focused on increasing their cryptocurrency mining capacity. At the end of the September quarter, Hut 8 Mining from Toronto had 4,724 bitcoins in reserve. Production of the Canadian bitcoin miner Bitfarms increased sequentially by 38% in the third quarter to 1,050 bitcoins.
Vancouver-based cryptocurrency firm Hive Blockchain told investors earlier this month that it mined a total of 32,000 Ether and 121,000 Ethereum for the September quarter.
Their growing manufacturing capacity and booming cryptocurrency market (especially bitcoin) are driving these stocks up. In 2021, the shares of Hut 8 Mining, Bitfarms and Hive grew by 321%, 156% and 56%, respectively.
Canadian mining stocks are also growing
Copper prices have risen sharply over the past three weeks. During this period, copper futures rose more than 35% on the back of rising demand. This rally will boost the profitability of Canadian non-ferrous metals companies, including The first quantum minerals (TSX: FM) and Ero Copper (TSX: ERO).
This is one of the reasons why these two stocks are now among the top gainers in the TSX Composite Index. First Quantum shares rose nearly 5% on Friday afternoon, while Ero Copper traded 4.6% higher in the session.
Despite improved growth forecasts amid soaring copper prices, inventories at these Canadian miners have not surged much this year. FM shares are up 27% YTD, while ERO is up 25%. This is why long term investors might consider buying them now.