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

A sharp increase in crypto-linked stocks was observed on Friday, driven primarily by the recovery of digital asset treasury firms, as progress towards resolving the Iran conflict led to a boost in risk assets, causing bitcoin to reach a two-month high of $78,000. US President Donald Trump stated that Iran has committed to maintaining the openness of the Strait of Hormuz, a crucial passage for global energy markets, and announced 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 remarks about acquiring Iran's enriched uranium have further enhanced 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 at digital 21shares. Mena stated that the removal of this significant geopolitical chokepoint has led to a massive wave of liquidity and investor confidence, potentially bringing an end to inflation fears. Bitcoin climbed to $78,000, breaking out of a two-month range, and major altcoins such as ether, Solana, and XRP posted gains of 4%-5%. The surge also affected crypto-related equities, with crypto treasury firms experiencing significant gains, including a 21% jump in Trump-family-backed American Bitcoin and a 13% surge in Strategy. Other digital asset-related stocks, such as Coinbase, Galaxy, and Bullish, also advanced, with the Nasdaq and S&P 500 reaching new record levels.