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

A sharp increase in crypto-linked stocks occurred on Friday, driven by the progress made towards ending the conflict with Iran, which in turn boosted risk assets and sent bitcoin to a two-month high of $78,000. In a social media post, US President Donald Trump stated that Iran has committed to keeping the Strait of Hormuz open, a crucial passage for global energy markets. The President also mentioned that peace talks between the two countries are progressing, and reports suggest that the US is considering unfreezing $20 billion in Iranian assets. Additionally, Trump's remarks about acquiring Iran's enriched uranium have further improved market sentiment. As a result, crude oil prices dropped 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 significant risk-on signal for global markets, which has removed a major geopolitical chokepoint and unleashed a massive wave of liquidity and investor confidence. With oil prices falling below $85 for the first time in a month, concerns about inflation may finally subside. The price of bitcoin rose to $78,000, breaking out of a two-month range, and the move had a ripple effect on the broader cryptocurrency market, with major altcoins such as ether, Solana, and XRP experiencing gains of 4%-5%. The biggest winners among crypto-related equities were crypto treasury firms, which had been heavily impacted in recent months. Trump-family-backed American Bitcoin jumped over 21%, while Strategy surged 13%. Other notable gainers included Strive, ProCap, Forum Markets, Solmate, and Upexi, all of which experienced significant increases. Furthermore, digital asset-related stocks such as Coinbase, Galaxy, and Bullish also advanced, with the Nasdaq and S&P 500 reaching new record levels.