Crypto Stocks Soar as Bitcoin Surges Towards $70,000
Crypto-linked equities surged on Wednesday as Bitcoin's price approached $70,000, resulting in a short squeeze that liquidated over a billion dollars in bearish crypto bets within an hour.
Strategy (MSTR) led the pack with a 12% gain to $103.58, followed by Coinbase (COIN), which rose 9.05% to $159.47. Circle and BitMine also saw significant gains of 9.44% to $78.50 and 9.68% to $20.05, respectively.
The sharp rally is attributed to Bitcoin's surge towards $70,000, with the crypto proxies in the stock market experiencing their most significant one-day rise this summer.
Strategy and Coinbase are among Wall Street's most shorted large-cap stocks, meaning that today's pop may be squeezing equity bears as well. The two companies hold a substantial amount of Bitcoin and Ethereum tokens, respectively, making their share prices function like leveraged bets on the cryptocurrencies they hold.