Coinbase and Others Are Set for a ‘GameStop Moment’ in Crypto Stock Short Squeeze

There is a short squeeze going on in beaten-down stocks across the cryptocurrency sector. All it takes is a quick look at the likes of

Coinbase Global

and

Silvergate Capital

to see that ‘

GameStop

-style’ dynamics are at work.

Crypto broker

Coinbase

(ticker: COIN) spiked 24% on Thursday, bringing its gains across the past five days to 54% and its year-to-date rise above 140%. Crypto banker Silvergate (SI) jumped 29% on Thursday and is up 60% since the end of last week. Other stocks exposed to digital assets, such as Bitcoin miner

Riot Platforms

(RIOT) and

MicroStrategy

(MSTR)—a software group with huge crypto holdings—show similar price action.