TeraWulf Leads Surge In Bitcoin Mining Stocks Amid Cooling Inflation, But Retail Sentiment Remains Tepid

TeraWulf Inc. (WULF) led Bitcoin mining stocks on Wednesday, surging over 12% in midday trading as Bitcoin's recovery coincided with a broader market rally fueled by cooling core inflation data.

Mining peers Riot Platforms Inc. (RIOT), Hut 8 Corp. (HUT), and Bit Digital Inc. (BTBT), climbed nearly 9%. 

Meanwhile, Cleanspark Inc. (CLSK) gained over 8%, while Bitfarms Ltd. (BITF) and HIVE Blockchain Technologies Ltd. (HIVE) trailed with a 6% increase.

However, Marathon Holdings Inc. (MARA), the largest corporate Bitcoin holder after MicroStrategy, recorded just a 3% gain.

Bitcoin (BTC.X) hovered just shy of the $100,000 resistance level, trading above $99,000—a 3.59% increase over the past 24 hours. 

Since Nov. 5, when President-elect Donald Trump won the U.S. election, Bitcoin has surged over 40%, driven by expectations of a crypto-friendly regulatory stance.

The rally was tempered by concerns that the Federal Reserve may maintain higher interest rates for an extended period. 

The December Consumer Price Index (CPI), released by the Bureau of Labor Statistics on Wednesday, showed annual inflation at 2.9%, in line with expectations. However, core CPI rose 3.2% over 12 months, lower than an expected 3.3% rise.

The softening of core inflation has raised expectations of rate cuts in 2025, which is a potential tailwind for cryptocurrencies. However, it is noteworthy that traders are still expecting a status quo in January’s policy, according to the CME FedWatch tool.

However, despite the surge in share price, retail sentiment around TeraWulf dipped to ‘bearish’ from ‘neutral’ a day ago, as chatter dipped to ‘normal’ from ‘high’ levels. 

Users forecasted that the stock won’t be able to hold onto its gains, given its volatile price movements in the past. 

Others simply expressed relief at the stock’s reversal.

Meanwhile, retail sentiment on Stocktwits around MARA’s shares were also in the ‘bearish’ zone even as retail chatter was at ‘high’ levels. 

One user said they don’t anticipate the stock will ever breach the $20 threshold.

Critics cited concerns about stock dilution and management practices.

Many were disappointed that Mara’s stock didn’t rise further given Bitcoin’s rally and the movement in other crypto mining stocks.

Marathon currently has 44,893 BTC in its treasury, valued at around $4.4 billion. 

The stock's gains on Wednesday pushed its one-year performance to a 2.5% increase. 

Meanwhile, TeraWulf's stock has gains of 314.5% over the last year.

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