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

A sharp rally in beaten-down digital asset treasury firms led the surge in crypto-linked stocks on Friday, as the prospect of an end to the Iran war boosted risk assets and sent bitcoin to a two-month high of $78,000. US President Donald Trump announced that Iran had committed to keeping the Strait of Hormuz open, a crucial passage for global energy markets, and that peace talks between the countries were progressing. Additionally, reports of the US considering unfreezing $20 billion in Iranian assets and acquiring Iran's enriched uranium further lifted sentiment. As a result, crude oil prices plummeted 13% to near $80 per barrel. The reopening of the Strait of Hormuz has been seen as a 'risk-on' signal for global markets, according to Matt Mena, a senior crypto research strategist. Bitcoin broke out from a two-month range, climbing to $78,000 and sparking gains across the broader cryptocurrency market, with major altcoins such as ether, Solana, and XRP posting 4%-5% gains. The move also rippled across crypto-related equities, with crypto treasury firms being the biggest winners, including Trump-family-backed American Bitcoin, which jumped over 21%, and Strategy, which surged 13%. Other digital asset-related stocks, such as Coinbase, Galaxy, and Bullish, also saw significant gains, rising by 6%, 8%, and 4.5%, respectively.