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

A significant rally in digital asset treasury firms, which had previously been struggling, led to a surge in crypto-linked stocks on Friday. This surge was fueled by progress towards ending the conflict in Iran, which had a positive impact on risk assets and sent the price of bitcoin to a two-month high of $78,000. In a post on Truth Social, US President Donald Trump stated that Iran had committed to keeping the Strait of Hormuz open, a crucial passage for global energy markets. Trump also mentioned that peace talks between the two countries were progressing, and reports of the US considering the unfreezing of $20 billion in Iranian assets further boosted sentiment. As a result, crude oil prices plummeted by 13% to nearly $80 per barrel. According to Matt Mena, a senior crypto research strategist at digital 21shares, the reopening of the Strait of Hormuz is a 'risk-on signal' that the global markets have been waiting for. Mena added that by removing one of the most significant geopolitical chokepoints in the world, Iran has effectively uncorked a massive wave of liquidity and investor confidence. The price of bitcoin climbed to $78,000, breaking out from a two-month range, and major altcoins such as ether, Solana, and XRP saw gains of 4%-5%. The biggest winners among crypto-related equities were crypto treasury firms, which had been heavily battered in recent months. Trump-family-backed American Bitcoin jumped over 21%, while Strategy surged 13%. Other digital asset-related stocks, including Coinbase, Galaxy, and Bullish, also saw significant gains.