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

A significant rally occurred in crypto-linked stocks on Friday, primarily driven by the rebound of digital asset treasury firms that had been struggling, as efforts to end the Iran war led to increased confidence in risk assets, resulting in bitcoin reaching a two-month high of $78,000. U.S. President Donald Trump announced via a Truth Social post that Iran had committed to keeping the Strait of Hormuz open, a crucial passage for global energy markets. Trump stated, 'Iran has just announced that the Strait... is fully open and ready for full passage,' and added that peace talks between the countries were progressing. Reports of the U.S. considering the unfreezing of $20 billion in Iranian assets and Trump's comments on acquiring Iran's enriched uranium further boosted market sentiment. As a result, crude oil prices plummeted by 13% to near $80 per barrel, alleviating concerns of a prolonged energy crisis. According to Matt Mena, senior crypto research strategist at Digital 21Shares, 'The reopening of the Strait of Hormuz is the risk-on signal the global markets have been waiting for.' Mena added, 'By removing one of the most significant geopolitical chokepoints in the world, Iran has effectively uncorked a massive wave of liquidity and investor confidence. With oil prices falling below $85 for the first time in a month, inflation fears may finally subside.' Bitcoin broke out from a two-month range, reaching $78,000 and increasing by nearly 5% over the past 24 hours. This surge had a ripple effect on the broader cryptocurrency market, with major altcoins such as ether, Solana, and XRP experiencing 4%-5% gains. Crypto-related equities, particularly crypto treasury firms that hold digital assets on their balance sheets, were the biggest winners, having been heavily impacted in recent months. Trump-family-backed American Bitcoin jumped over 21%, while Strategy surged 13%. Strive and ProCap added around 10%-11% as investors shifted back to high-beta bitcoin exposure. Similar trends were observed in altcoin-linked equities, with Forum Markets climbing 19% and Solana-linked names like Solmate and Upexi gaining 12%-11%. Other digital asset-related stocks also advanced, including Coinbase, which rose over 6%, Galaxy, which gained 8%, and Bullish, which increased by 4.5%. By the early afternoon on the East Coast, the Nasdaq and S&P 500 had risen by about 1.4% each, reaching new record levels.