Crypto Roundup: Bitcoin's Surge Boosts Adjacent Stocks

Bitcoin is back above the $18,000 level

Deputy Editor
Jan 12, 2023 at 1:01 PM
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Today's encouraging inflation data is helping Bitcoin (BTC) reclaim a key level, with the cryptocurrency jumping above $18,000 for the first time since Dec. 14. 

In addition to the inflation update, lawyers for defunct crypto exchange FTX have reportedly found roughly $5 billion worth of "liquid" assets, which is providing tailwinds for BTC. The lawyers went on to say that the cache was so high, the selling could eventually lead to substantial downside.

Bitcoin's pop bodes well for several crypto-friendly stocks, namely Marathon Digital Holdings Inc (NASDAQ:MARA) and Silvergate Capital Corp (NYSE:SI).

Can MARA Break Above a Newfound Ceiling?

Marathon Digital stock was last seen trading at $5.69 after adding 6%. The $6 level has kept a lid on the shares on a closing basis over the last two sessions, and looks poised to do so again today. Still, MARA is already up 64.6% since the start of the year.

In the options pits, MARA calls are particularly popular. At the session's halfway point, more than 73,000 bullish bets have crossed the tape, or more than double the average intraday amount. The most popular position by far is the weekly 1/13 6-strike call, which signals these traders see more upside by the end of tomorrow's session.

It's also worth noting that short sellers are targeting the stock. Short interest is up 27.2% in the last two reporting periods, and makes up a significant 45.2% of the stock's available float.

Silvergate Stock Holding Above 2-Year Lows

Silvergate Capital stock is 4.3% higher to trade at $12.70 at last check. The shares recently pulled back to $10.81, their lowest level in roughly two years, and are more than 90% lower in the last 12 months. 

Like its aforementioned sector peer, short interest has been on the rise -- up a staggering 167.8% in the last month. The shares sold short account for 58.9% of SI's available float, or nearly a week's worth of pent-up buying power.

Options look like a good way to go, too, per Silvergate stock's Schaeffer's Volatility Scorecard (SVS), which sits up at 97 out of 100. This this means the security stock has exceeded option traders' volatility expectations during the past year.


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