Digital Asset Treasury Firms Drive Crypto Stock Rally as Bitcoin Reaches $78,000

A surge in crypto-linked stocks took place on Friday, primarily driven by the sharp rally of digital asset treasury firms that had been previously beaten down, as progress towards ending the Iran conflict positively impacted risk assets and propelled bitcoin to a two-month high of $78,000. President Trump stated in a Truth Social post that Iran had committed to maintaining the Strait of Hormuz's openness, a crucial passage for global energy markets. The US President added that peace negotiations between the two countries were progressing, and reports of the US considering the unfreezing of $20 billion in Iranian assets, along with Trump's comments on acquiring Iran's enriched uranium, further boosted sentiment. As a result, crude oil prices plummeted by 13% to nearly $80 per barrel. According to Matt Mena, senior crypto research strategist at Digital 21Shares, the reopening of the Strait of Hormuz serves as a risk-on signal for global markets, effectively uncorking a massive wave of liquidity and investor confidence. With oil prices dropping below $85 for the first time in a month, concerns about inflation may finally subside. Bitcoin climbed to $78,000, breaking out of a two-month range that had capped prices since early February, and rose nearly 5% over the past 24 hours. This move had a ripple effect on the broader cryptocurrency market, with major altcoins such as ether, Solana, and XRP experiencing 4%-5% gains. In terms of crypto-related equities, crypto treasury firms, which had been heavily battered in recent months, were the biggest winners. Trump-family-backed American Bitcoin jumped over 21%, while Strategy surged 13%. Strive and ProCap added around 10%-11% as investors rotated back into high-beta bitcoin exposure. Similar moves were observed across altcoin-linked equities, with Forum Markets climbing 19% and Solana-linked names like Solmate and Upexi gaining 12%-11%. Other digital asset-related stocks also advanced, including Coinbase, which rose over 6%, Galaxy, which gained 8%, and Bullish, which rose 4.5%. The Nasdaq and S&P 500 each jumped to new record levels, rising by approximately 1.4%.