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

A surge in crypto-linked stocks was observed on Friday, primarily driven by a sharp increase in digital asset treasury firms that had been struggling, as progress towards resolving the Iran conflict led to a rise in risk assets and pushed bitcoin to a two-month high of $78,000. US President Donald Trump stated in a social media post that Iran had committed to maintaining the Strait of Hormuz's openness, a crucial passage for global energy markets. Trump added that peace negotiations between the countries were advancing, and reports of the US considering the unfreezing of $20 billion in Iranian assets and acquiring Iran's enriched uranium further boosted market sentiment. As a result, crude oil prices plummeted 13% to nearly $80 per barrel, calming fears of a prolonged energy crisis. According to Matt Mena, a senior crypto research strategist, the reopening of the Strait of Hormuz serves as a risk-on signal for global markets, removing a significant geopolitical chokepoint and unleashing a massive wave of liquidity and investor confidence. Bitcoin broke out from a two-month range, climbing to $78,000 and posting a nearly 5% gain over 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. The biggest winners among crypto-related equities were crypto treasury firms, which had been heavily impacted in recent months. Companies like 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 Ethereum-focused treasury firm Forum Markets climbing 19%, and Solana-linked names like Solmate and Upexi gaining 12%-11%. Other digital asset-related stocks, including Coinbase, Galaxy, and Bullish, also advanced, with the Nasdaq and S&P 500 reaching new record levels.