BUY THE DIP: $BTC $RIOT $MARA $COIN $MSTR $HUT $BITF $HIVE – A Strategic Move Amid a Devaluing Dollar and U.S. Sell-Off
By Shayne Heffernan
April 7, 2025
Bitcoin ($BTC) has been on quite a ride, climbing to $101,000 in late 2024 before pulling back, as reported by CNBC. Meanwhile, the U.S. stock market has faced its own turbulence, with a major sell-off in early 2025 sparked by fears over China’s DeepSeek AI model. Add in a U.S. dollar that’s steadily losing value due to inflation and global trade shifts, and there’s a lot to unpack. But here’s the opportunity: the dip in Bitcoin and related stocks—Riot Platforms ($RIOT), Marathon Digital Holdings ($MARA), Coinbase Global ($COIN), MicroStrategy ($MSTR), Hut 8 Corp ($HUT), Bitfarms Ltd ($BITF), and HIVE Digital Technologies ($HIVE)—is a chance to buy in. These companies are deeply tied to Bitcoin’s future, and their long-term potential outweighs the short-term market jitters. Let’s break down why buying the dip makes sense, looking at the dollar’s decline, the recent U.S. market reaction, and why these assets are worth considering.
The Devaluing Dollar: A Push to Buy
The U.S. dollar has been taking a hit, and it’s not hard to see why. Trump’s tariffs—10% on all imports, with steeper rates like 34% on China—are driving up costs for goods, stoking inflation fears. High Frequency Economics estimated a $741 billion impact on U.S. households or companies from these tariffs, and the Tax Foundation predicts a 0.2% drop in long-run GDP from the 25% tariffs on Canada and Mexico alone. This inflation pressure has markets expecting a Federal Reserve rate cut in June, as reported by Reuters. A weaker dollar might help U.S. exports, but it also cuts its purchasing power, making assets like $BTC and related stocks a better bet for preserving and growing wealth.
Global trade dynamics are adding to the dollar’s woes. Tariffs reduce demand for foreign currencies in trade, giving the USD a temporary boost, but over time, the U.S. will likely need to lower the dollar to stay competitive, as I’ve noted in past analyses. Safe-haven currencies like Japan’s yen and the Swiss franc have gained against the dollar, with the U.S. Treasury 10-year yield dropping to 4.53% in January, signaling a shift to bonds, per Reuters. Holding cash in a devaluing dollar is a losing strategy—investing in growth assets like $BTC and Bitcoin-linked stocks offers a smarter path.
The U.S. Sell-Off: An Overblown Reaction to DeepSeek
The recent U.S. market sell-off, driven by China’s DeepSeek AI model, has been intense. In late January, Nvidia lost a record $593 billion in market value in a single day, with shares tumbling nearly 17%, as reported by Business Standard. The Nasdaq dropped 3.1%, and other Bitcoin-linked stocks felt the ripple—Coinbase ($COIN) and MicroStrategy ($MSTR) saw declines, per The Washington Post. DeepSeek’s model, built for just $5.6 million, rivaled ChatGPT, raising fears that U.S. tech firms might be overspending on AI infrastructure.
This reaction, however, seems overblown. DeepSeek competes more with mobile and PC apps like ChatGPT, not the data center chips that power AI infrastructure, as Morgan pointed out in Reuters. The real money in AI is in chips, where U.S. firms dominate. Analysts like Bank of America’s Vivek Arya called the sell-off an “enhanced buy opportunity” for tech stocks, per Forbes. Bernstein analysts also questioned DeepSeek’s cost claims, suggesting the panic was exaggerated, as reported by The Guardian. The market’s fear of DeepSeek disrupting U.S. dominance overlooks the fact that leading AI companies still rely on advanced GPUs, a market U.S. firms control.
Why These Assets Are Worth Buying
The assets in focus—$BTC, $RIOT, $MARA, $COIN, $MSTR, $HUT, $BITF, and $HIVE—are well-positioned for growth, driven by their ties to Bitcoin and the broader crypto ecosystem.
- Bitcoin ($BTC): Bitcoin, a decentralized cryptocurrency, has shown resilience, hitting $101,000 after the U.S. delayed tariffs on Mexico, as per CNBC. It dropped to a three-week low in February due to tariff fears, but its long-term potential as a hedge against a devaluing dollar remains strong. Investors like Metaplanet are raising $745 million to acquire 21,000 BTC by 2026, signaling confidence, according to USA Today. Bitcoin’s role as a safe-haven asset makes it a smart buy during this dip.
- Riot Platforms ($RIOT): Riot Platforms, a leading U.S.-based Bitcoin mining company, operates large facilities in Texas. It mined 533 Bitcoin in March 2025, up 17% month-over-month, as noted in updates from TipRanks. Riot’s stock offers direct exposure to Bitcoin’s price through its mining operations.
- Marathon Digital Holdings ($MARA): Marathon, based in Las Vegas, is one of the largest Bitcoin miners globally. It mined 590 Bitcoin in Q2 2024, despite a 40% drop due to the Bitcoin halving, and focuses on efficiency and global expansion, like a pilot project in Finland using recycled heat, per Webopedia. Marathon’s stock is a pure-play Bitcoin mining investment.
- Coinbase Global ($COIN): Coinbase, a top crypto trading platform, supports retail and institutional clients across 250 cryptocurrencies. Its stock rose 244% in the last year compared to Bitcoin’s 126%, but faced a tough Q1 2025 with a 33% drop, per TipRanks. Coinbase remains a key player in the crypto ecosystem.
- MicroStrategy ($MSTR): MicroStrategy, now Strategy, has become a major Bitcoin holder, converting cash reserves into Bitcoin since 2020. Its market cap exceeds $60 billion, nearly three times the value of its Bitcoin holdings, reflecting a premium due to its crypto advocacy, as noted by Cabot Wealth Network. Its stock surged 535% in the last year, offering high-risk, high-reward exposure to Bitcoin’s price.
- Hut 8 Corp ($HUT): Hut 8, a Bitcoin mining company, aims for 50+ EH/s capacity with under 15 J/TH efficiency, per Webopedia. The stock is down 62% from its 52-week high but trades at a discount to consensus price targets, offering upside potential, according to Barchart.
- Bitfarms Ltd ($BITF): Bitfarms, a Bitcoin data center company, reported Q4 2024 results focusing on operational improvements despite challenges, per Webopedia. Its stock offers exposure to Bitcoin mining with a sustainability focus.
- HIVE Digital Technologies ($HIVE): HIVE Digital Technologies bridges digital currency and capital markets, offering exposure to Bitcoin through mining operations, per TipRanks. It doesn’t pay dividends, making it a growth-oriented option.
Additional Considerations
- iShares Bitcoin Trust ($IBIT): This spot Bitcoin ETF tracks Bitcoin’s price directly by holding the cryptocurrency, with a fee of 2.47%, as per NerdWallet. It’s a conservative option for long-term holders seeking stability.
- Fidelity Wise Origin Bitcoin Trust ($FBTC): Another spot Bitcoin ETF, with a fee of 2.5%, offering direct exposure to Bitcoin’s price movements, per NerdWallet. It’s an alternative for investors avoiding company-specific risks.
The Bigger Picture
The devaluing dollar, driven by inflation and trade pressures, makes holding cash a losing move. Assets like $BTC and stocks such as $RIOT, $MARA, $COIN, $MSTR, $HUT, $BITF, and $HIVE offer a hedge against this decline, with strong ties to Bitcoin’s growth. The recent U.S. sell-off, sparked by DeepSeek, is an overreaction—U.S. firms still lead in crypto infrastructure, and Bitcoin’s adoption continues to grow, with firms like Metaplanet investing heavily, per USA Today. The market will rally as confidence returns, and now’s the time to buy the dip. Don’t miss out—these assets are poised to climb as Bitcoin and the crypto ecosystem gain traction.
