Silvergate Capital stock jumps after analyst points out correlation to bitcoin

Silvergate Capital (NYSE:SI) stock surges 13% after the bank is mentioned in a Morgan Stanley note that observes increased institutional investor interest in cryptocurrency. In a 68-page note, equity strategist Sheena Shah briefly discusses the correlation of Silvergate's (SI) stock and bitcoin's price. "Silvergate's equity price has tracked bitcoin well over the past year," Shah writes in the note. "The correlation between the two appears to rise during crypto bull markets." Bitcoin trading has been relatively stable on Monday, slipping to $60.8K, and below its $67.7K record high touched in October. In the past year, SI's total return outpaces bitcoin's 338% increase as seen in the graph below. SA contributor Chetan Woodun explains Silvergate's (SI) role in the bitcoin ecosystem.