Digital Asset Treasury Firms Lead Crypto Stock Surge as Bitcoin Reaches $78,000

A surge in crypto-linked stocks occurred on Friday, driven by a significant rally in digital asset treasury firms that had been undervalued, as the prospect of an end to the Iran conflict boosted risk assets and sent bitcoin to a two-month high of $78,000. US President Donald Trump announced in a social media post that Iran had committed to keeping the Strait of Hormuz open, a crucial passage for global energy markets. Trump also stated that peace talks between the countries were progressing, and reports of the US potentially unfreezing $20 billion in Iranian assets and acquiring Iran's enriched uranium further improved sentiment. As a result, crude oil prices dropped 13% to nearly $80 per barrel. According to Matt Mena, a senior crypto research strategist, the reopening of the Strait of Hormuz is a signal for the global markets to take on more risk. The removal of this significant geopolitical bottleneck has led to a massive wave of liquidity and investor confidence, which may finally bring an end to inflation fears. Bitcoin broke out of its two-month range, climbing to $78,000 and rising 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 posting 4%-5% gains. The biggest winners among crypto-related equities were crypto treasury firms, which had been heavily impacted in recent months. Companies such as American Bitcoin, Strategy, Strive, and ProCap saw significant gains, with investors rotating back into high-beta bitcoin exposure. Similar trends were observed in altcoin-linked equities, with Forum Markets, Solmate, and Upexi experiencing notable increases. Other digital asset-related stocks, including Coinbase, Galaxy, and Bullish, also advanced. The Nasdaq and S&P 500 jumped to new record levels, each rising by approximately 1.4%.