The Role of Bitcoin Newsfeed on the Cryptocurrency Stocks Prices: The Case of Marathon Digital Holdings, Inc.

Abstract

In the financial and business markets, fundamental and technical analyses are considered crucial for investments decisions. Fundamental analysis is often used for long-term investments, whereas technical analysis focuses more on short-term trades. Nevertheless, in today’s high-speed digital age, both types may be insufficient for effective decision-making initiatives or achieving the desired outcomes. We are living in a data-driven world in which the speed, accuracy, and quality of the collected information/data are the most significant and prevailing. This article sheds light on the importance of news feeds in manipulating the prices of stocks and currencies. Specifically, this article centers on how the stock price of Marathon Digital Holdings, Inc. is largely dependent on the news feeds of Bitcoin rather than on fundamental or technical approaches. Technology is a powerful disruptive tool that has transformed numerous industries from manual processing to digitalization to achieve organizational objectives and goals. Technology is changing the financial world and has resulted in the emergence of the FinTech industry. This industry has achieved high visibility and significance during the Covid-19 virus outbreak. It is not surprising that multiple other sectors, such as transportation, healthcare, banking, retail, and education, have grown dependent on FinTech services (Kaur and Lashkari, 2021). FinTech firms offer a wide range of innovative and novel strategies to improve financial transactions, processes, products, and services. They provide technological solutions to finance-related problems, concerns, and issues (Kaur and Lashkari, 2021). Furthermore, they are gradually replacing the traditional financial and banking services by creating, for instance, e-wallets/digital wallets.