The stocks of cryptocurrency companies are skyrocketing as investors rush back into risk assets on news of a ceasefire between the U.S. and Iran.
Stocks of leading crypto companies such as Strategy (NADAQ: $MSTR), Galaxy Digital (NASDAQ: $GLXY), Coinbase Global (NASDAQ: $COIN) and Circle (NYSE: $CRCL) are each up 6% or more. Most are up more than 8%.
Similarly, the stocks of crypto miners such as Riot Platforms (NASDAQ: $RIOT), MARA Holdings (NASDAQ: $MARA) and Hut 8 (NASDAQ: $HUT) are each up 6% to 8%.
The rise in crypto stocks mirrors a rise in cryptocurrencies, with Bitcoin (CRYPTO: $BTC) up 5% and trading at $72,000 U.S. Ethereum’ (CRYPTO: $ETH) has jumped 7% to trade at $2,250 U.S.
The rush back into risk assets and stocks comes as market volatility subsides. The VIX, Wall Street’s so called “fear gauge,” is down 20% on April 8.
At the same time, the Bitcoin Volmex Implied Volatility Index (BVIV) has fallen more than 6% to 46, a level that indicates calm conditions.
Markets around the world are responding positively to news of the Iran ceasefire, with stocks in Europe and Asia up as much as 5% on the day.
Stocks and crypto are also getting a tailwind from crashing crude oil prices, which are down more than 15% from a day earlier.
It remains to be seen if this is the start of a meaningful reversal for cryptocurrencies and crypto stocks after months of steady declines.
