Mercurity Fintech Holding Inc. (MFH) has been gaining big in the pre-market this morning, climbing upwards of a staggering 23.8%. This comes after a relatively low gain of 1.5% during the day, despite sharp, tumultuous swings throughout the trade session. In fact, the general stock movement for the China-based blockchain company is typically defined by short bursts in either direction. These tumultuous swings each day cause uncertainty amongst market participants, in terms of safely predicting the direction of daily close. Despite this, MFH has been on a steady rise since last week, followed by a month-long general declining trend observed.
MFH Growth Linked to Soaring Bitcoin
The prior month had been positive for Bitcoin (BTC) holders, given its 12.8% climb. The cryptocurrency touched the $43,000 mark yesterday, ushering optimism amongst the crypto market. Blockchain stocks linked to cryptocurrencies such as BTC followed this flight shortly after and had soared as a result. The same trigger presumably coincided with the MFH growth spurt and the weeklong general bullish movement in its stock price.
Skepticism surrounding MFH despite Bullish Sentiment
The market clearly holds bullish sentiments around crypto stocks such as MFH, given the current BTC climb. Despite this, however, there still exists a moderate degree of skepticism. This evidently reflects in the tumultuous nature of the MFH stock movement, with no clear indication of gain or loss. The market understandably holds mixed views about future prospects, given that similar BTC peaks were observed throughout the year. These peaks had been short-lived, failing to sustain, which sways away risk-averse, and even moderately risk-tolerant traders within the market.
MFH Riding the Chinese Growth Wave
In addition to a BTC rise, the MFH spike last week coincides with a broader Chinese stock growth wave. This relates to an announcement last week by China’s State Council to support and facilitate the Chinese private sector. Chinese stocks that were globally trading would have the full support of the Chinese state in achieving growth. Chinese indices soared following the announcement with MFH clearly caught up in the broader growth wave.
MFH has been seeing a tumultuous growth spurt following heavy volatility. This presumably links to BTC climbing this month, crossing the $43,000 mark, instilling bullish sentiments in the market. Despite this, however, traders remain cautious about the spike, which reflects in the volatile movement seen with MFH. The stock may also presumably be riding a broader Chinese growth wave since last week.