Hut 8 Surges 16.8% on Intraday Rally: What’s Fueling the Blockchain Miner’s Breakout?

Summary
• Hut 8 (HUT) trades at $51.54, up 16.8% from its $44.12 previous close
• Intraday high of $52.63 and low of $45.14 highlight volatile session
• Turnover of 11.46 million shares signals intense short-term interest

Hut 8’s 16.8% intraday surge has electrified the blockchain sector, driven by a confluence of sector-wide optimism and speculative momentum. The stock’s sharp rebound from a 45.14 intraday low to a 52.63 high reflects aggressive buying pressure amid broader crypto market stabilization and ETF-driven inflows. With the Nicholas Crypto Income ETF (BLOX) and Grayscale Bitcoin Miners ETF (MNRS) rising 1.33% and 3.26%, respectively, HUT’s rally aligns with a sector-wide re-rating of blockchain infrastructure plays.
Blockchain Sector Volatility and ETF Momentum Drive HUT’s Intraday Surge
Hut 8’s explosive 16.8% gain stems from a perfect storm of sector-specific catalysts. The broader blockchain sector has been buoyed by regulatory clarity and institutional adoption, as evidenced by Binance’s $2 billion asset tokenization advisory in Pakistan and SoFi’s stablecoin launch. Meanwhile, leveraged ETFs like MNRS and BLOX have amplified retail and institutional exposure to crypto miners, with MNRS up 3.26% and BLOX up 1.33% on the day. HUT’s technical setup—a short-term bullish trend and RSI near 50—further attracted algorithmic and discretionary traders seeking momentum plays.

Blockchain Sector Mixed as HUT Outpaces Peers
While HUT’s 16.8% surge dwarfs the sector’s broader performance, peers like Riot Platforms (RIOT) posted a modest 0.41% gain. The Grayscale Bitcoin Miners ETF (MNRS) and Direxion Daily Crypto Industry Bull 2X Shares (LMBO) rose 3.26% and 3.59%, respectively, underscoring ETF-driven optimism. HUT’s outperformance reflects its position as a high-beta play within the sector, leveraging both macro tailwinds and speculative ETF flows.

Options and ETFs Highlight Bullish Momentum: Key Plays for HUT’s Rally
• 200-day MA: $26.20 (well below current price)
• RSI: 50.71 (neutral to bullish)
• MACD: -0.36 (bullish divergence)
• Bollinger Bands: Upper at $48.20 (price near upper band)

Hut 8’s technicals suggest a continuation of its short-term bullish trend. The stock is trading above its 200-day MA and within a Bollinger Band breakout pattern, with RSI hovering near 50. For options traders, the HUT20251226C50 and HUT20251226C52 call options stand out. HUT20251226C50 (strike $50, expiration 12/26) offers a 19.42% leverage ratio and 86.25% implied volatility, with high gamma (0.0747) and theta (-0.4336) indicating strong price sensitivity and time decay. HUT20251226C52 (strike $52, expiration 12/26) features a 30.04% leverage ratio and 88.16% IV, with high turnover (369,164) and gamma (0.0752).

Under a 5% upside scenario (target $54.11), HUT20251226C50 would yield a $4.11 payoff, while HUT20251226C52 would deliver a $2.11 payoff. Aggressive bulls should consider HUT20251226C50 into a breakout above $52.63, the intraday high.

Backtest Hut 8 Stock Performance
The backtest of HUT's performance after an intraday surge of at least 17% from 2022 to the present shows favorable results. The 3-Day win rate is 52.78%, the 10-Day win rate is 57.48%, and the 30-Day win rate is 59.62%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 17.25%, which occurred on day 59, suggesting that HUT can capitalize on intraday volatility to achieve decent gains.

HUT’s Breakout: A High-Volatility Play Amid Sector Optimism
Hut 8’s 16.8% intraday surge reflects a confluence of sector-wide optimism and speculative ETF-driven momentum. With the stock trading near its 52-week high of $57.29 and RSI neutral, the move appears sustainable if institutional adoption and regulatory clarity persist. Investors should monitor the $52.63 intraday high as a critical breakout level. Meanwhile, sector leader Riot Platforms (RIOT) gained 0.41%, underscoring the sector’s mixed but improving sentiment. For traders, HUT20251226C50 offers a high-leverage, high-gamma play on a continuation of the rally. Watch for a $54.11 target or a breakdown below $48.20 to signal trend exhaustion.