The crypto sector is on the rise after Friday's 'halving'
Cryptocurrency stocks are on the rise today, as Bitcoin (BTC) moves higher following Friday's fourth-ever 'halving' event-- its first since 2020. Halving refers to reducing the reward for mining new bitcoin by 50% in order to manage the supply and maintain the cryptocurrency's scarcity. Among others, the shares of both Coinbase Global Inc (NASDAQ:COIN) and Riot Platforms Inc (NASDAQ:RIOT) are surging in response.
At last glance, COIN was up 6.8% to trade at $225.25, earlier climbing as high as $227.15. The shares' 60-day moving average has caught the 16.5% drawdown this quarter. Since the start of the year, the equity is up roughly 29%.
Riot Platforms was last seen up 11.8% to trade at $10.20, extending its jump off its April 18 52-week low of $7.80. In 2024, the security is sporting a 34% deficit. Options bulls are targeting RIOT today, with 78,000 calls exchanged so far -- triple the intraday average volume -- in comparison to 16,000 puts. The weekly 4/26 10-strike call is the most popular by far, with new positions opening there.
A short squeeze could be fueling the crypto gains today. Short interest accounts for 6.3% of COIN's available float, and 13.4% of RIOT's.