Can cryptocurrency enthusiasts finally declare the “crypto winter” to be over? Maybe. Bitcoin (BTC-USD) powered higher this past holiday weekend. In turn, this rally is prompting a run-up in a number of crypto stocks. Some of today’s notable gainers include Marathon Digital (NASDAQ:MARA) stock, Riot Platforms (NASDAQ:RIOT) stock and Coinbase (NASDAQ:COIN) stock.
There’s no denying that Bitcoin performed poorly last year. The crypto started 2022 at around $40,000 but soon sank as low as $17,000 and refused to budge. However, patient BTC investors were definitely rewarded this past weekend.
Amazingly, Bitcoin shot up from less than $19,000 to more than $21,000 in a matter of days. This morning, BTC managed to hold the $21,000 level as well, so the crypto bulls may just have a sustainable rally to start the year.
What catalyzed the rally in Bitcoin and cryptocurrency in general? Some have suggested that crypto markets reached the $1 trillion valuation mark over the weekend because of a “record number of short liquidations.” Coinalyze data reportedly indicates that nearly $500 million worth of short-sale positions against cryptocurrency “were liquidated since Friday.”
What’s Happening With Crypto Stocks?
Crypto stocks often tend to follow the price moves of cryptos — and especially Bitcoin. So, it makes sense that some notable crypto and blockchain names are trading higher today. Among the winners this morning are MARA stock, RIOT and COIN. Clearly, today’s financial traders are optimistic about this space.
Indeed, some folks may be turning super-bullish on crypto and related assets. For example, SkyBridge Capital founder Anthony Scaramucci expects 2023 to be a “recovery year” for digital assets. Scaramucci is bracing for the price of Bitcoin to land between $50,000 and $100,000.
Movement like that would surely lift the share prices of MARA, RIOT and COIN stocks, if it happens. Of course, it’s hard to predict where digital assets will finish the year. Today, though, it’s safe to say that the market generally favors Bitcoin and crypto stocks.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
