Why Cryptocurrency Stocks Like Riot Blockchain Are Higher Today

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what happened

Often in the cryptocurrency space, investments are aligned with the largest and most important currencies. It was effective on Thursday when it came to crypto and crypto-adjacent stocks Riot Platform (Rioting 14.52%) And Silvergate Capital (And 12.89%) Flying behind it Bitcoinof (BTC 7.08%) Advance Riot closed about 15% longer, while Silvergate grew about 13%.

so what

Several factors have come together to push Bitcoin and other key cryptocurrencies, not least of which was the government’s inflation data released this morning. The top coin was trading significantly higher where it crossed the $18,000 price level. The last time it was that high was in November 2022. Other major coins and tokens were also heading north, viz Ethereum And cardano.

Riot and Silvergate are rather different animals. The former is essentially a pure-play Bitcoin miner — at least for now — so the coattails effect for that stock is obvious.

SilverGate is in many ways a traditional bank but is often hidden with other crypto assets since its SilverGate Exchange Network (SEN) is a real-time payment platform serving users of cryptocurrency exchanges and institutions. The brighter the digital coin market, the more SEN (and by extension, SilverGate) will benefit.

what now

While it’s too soon to tell if this is a bona fide cryptocurrency rally, it looks like the bulls are starting to pile into the digital currency again. If the trend holds, Riot, Silvergate, and any stocks closely tied to such assets should continue to do well.

Eric Volkmann has positions in Bitcoin and Ethereum. The Motley Fool has and recommends positions on Bitcoin, Cardano, and Ethereum. The Motley Fool recommends Silvergate Capital. Motley Fool has a revealing policy.


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