Why Are COIN, RIOT, MARA, MSTR Crypto Stocks Up Today?

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Popular Cryptocurrencies Bitcoin (BTC-USD) and Ethereum (ETH-USD) increased over the weekend. In response to this, crypto and blockchain stocks Coinbase Global (NASDAQ:PIECE OF MONEY), Riot Blockchain (NASDAQ:RIOT), digital marathon (NASDAQ:MARA) and MicroStrategy (NASDAQ:MSTR) are mobilizing today. The renewed excitement over the Ethereum merger upgrade may be a reason for the big moves in the cryptocurrency and related stocks.

There are reports that Ethereum developers are preparing for the token to move from proof-of-work (PoW) consensus mining to proof-of-stake (PoS). Admittedly, this process could take years and there have already been several delays.

However, Ethereum developers have provided a target timeline for a crucial stage in this transition, known as Merge. Apparently, the final trial of the merger should take place during the second week of August.

Without going into technical details, we can say that the transition from Ethereum to a PoS protocol should reduce network energy consumption by 99%. This could mitigate not only much of the energy waste, but also some of the pushback from sustainability advocates.

What’s going on with crypto stocks?

Crypto stocks are often highly correlated to Bitcoin and Ethereum prices. Over the weekend and through Monday morning, Bitcoin fell from $20,800 to $22,100. Meanwhile, Ethereum fell from $1,230 to $1,480. So, ETH made the biggest percentage move, but both cryptocurrencies caught a bid.

Due to the strong correlation between crypto stocks and the prices of BTC and ETH, several of these stocks have surged today. There was apparently no need for company specific news as COIN soared 15%, RIOT 19%, MARA 23% and MSTR 11%.

It certainly also helped that the tech folks Nasdaq was up more than 1% this morning. The aforementioned four stocks are all on the exchange, so today is just a good day to be in tech, and more specifically in crypto-related assets.

However, Bitcoin, Ethereum, and crypto stocks in general are still significantly down from their all-time highs. Thus, there might be more room for these assets to work.

As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

David Moadel has delivered compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga and (of course) InvestorPlace.com. He is also the Chief Analyst and Market Researcher for Portfolio Wealth Global and hosts the popular YouTube financial channel Looking at the Markets.

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