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

A sharp increase in crypto-linked stocks took place on Friday, with digital asset treasury firms experiencing a substantial rally, as progress towards resolving the Iran conflict led to a boost in risk assets, resulting in bitcoin reaching a two-month high of $78,000. President Trump announced on Truth Social that Iran has committed to keeping the Strait of Hormuz open, a crucial passage for global energy markets, and that peace talks between the countries are progressing. Additionally, reports of the US considering the unfreezing of $20 billion in Iranian assets and Trump's comments on acquiring Iran's enriched uranium further enhanced market sentiment. As a result, crude oil prices plummeted by 13% to nearly $80 per barrel. The reopening of the Strait of Hormuz has been viewed as a 'risk-on' signal for global markets, according to Matt Mena, a senior crypto research strategist. By removing a significant geopolitical chokepoint, Iran has effectively increased liquidity and investor confidence, potentially bringing an end to inflation fears. Bitcoin rose to $78,000, breaking out of a two-month range, and major altcoins such as ether, Solana, and XRP experienced gains of 4%-5%. The surge also affected 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, including Coinbase, Galaxy, and Bullish, also advanced, with the Nasdaq and S&P 500 reaching new record levels.