Can the Fed Continue to Bolster Riot Platforms (RIOT) and the Blockchain Space?[Stocks](https://moneymorning.com/category/article/stocks/) # Can the Fed Continue to Bolster Riot Platforms (RIOT) and the Blockchain Space?  by Joshua Enomoto  September 24, 2025  Share it: It’s not so much about the Federal Reserve and its [interest rate cut](https://moneymorning.com/2025/09/19/nvidias-5-billion-intel-bet-steals-spotlight-from-fed-rate-cuts/) last week that has moved the market. Indeed, heading into the headline announcement, multiple experts had pegged the reduction as a matter of “how much,” not “if.” Rather, speculation was tied to Fed policymakers’ commentary and thought process on forward strategic outlooks. Essentially, the central bank hinted that future rate cuts may be in the pipeline — and this potentiality has boosted downwind beneficiaries, particularly gold and other precious metals. However, another beneficiary is the cryptocurrency sector, which saw an initial rise in total market capitalization before encountering a corrective spell. Still, the greater likelihood of a substantively dovish monetary policy has lifted blockchain miners such as **Riot Platforms** (NASDAQ: [RIOT](https://moneymorning.com/stocks/riot)). During the midweek session, [RIOT](https://moneymorning.com/stocks/riot) stock has gained over 5%. Earlier in the morning session, the bulls pushed the price a hair beyond the psychologically important $20 level. For those looking for a near-term target, that would probably be a reasonable goal to aim at. Rival **Canaan** (NASDAQ: [CAN](https://moneymorning.com/stocks/can)) popped nearly 13% on the day while **MARA Holdings** (NASDAQ: [MARA](https://moneymorning.com/stocks/mara)) saw a modest lift of over 1%. However, RIOT stock is the clear winner in the trailing-month time period, where the security has gained 35%. Now, the question is this: can it keep moving higher? Much of the enthusiasm will likely depend on a potential short squeeze. Right now, the [short interest](https://fintel.io/ss/us/riot) of [RIOT](https://moneymorning.com/stocks/riot) stock is estimated to stand at 22.28% of its float. That’s a hot number, indicating that a significant portion of [RIOT](https://moneymorning.com/stocks/riot)’s publicly available pool of securities is mechanically sold short. Being a credit-based transaction, these securities must eventually be returned to the lending creditor (broker) — irrespective of whatever happens to the stock. Under circumstances favorable to bearish speculators, a declining value of the target security would allow reacquisition at a discounted price relative to the original sale price. This dynamic would allow the bear to return the borrowed securities back to the broker, pocketing the difference as profit. However, if the security goes in the opposite direction, the resultant obligatory payment is uncapped, which is the core fuel of the short squeeze.  Between January 2021 and early September 2025, the correlation coefficient between [RIOT](https://moneymorning.com/stocks/riot) stock and its short interest landed at -29.75%, which falls outside the threshold of significance for inverse relationships. However, since April of this year, the coefficient was -72.17%, which indicates a strong inverse correlation. If the bears are intent on unwinding their short exposure, that would likely create upside pressure for [RIOT](https://moneymorning.com/stocks/riot) stock. Since there’s already sizable short interest, [RIOT](https://moneymorning.com/stocks/riot) may have some legs left. However, keep in mind that the underlying ratio is only 2.11 days to cover, which means that bearish exposure can be closed relatively quickly. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Email This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. 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