TLDR
- Bitcoin reached above $73,000, which was its highest price in around a month, increasing by more than 7.6% within 24 hours
- The stock of Coinbase rose approximately 15%, while Strategy gained about 11.5% due to its Bitcoin exposure
- Trump publicly supported crypto dominance and pressured Congress regarding the CLARITY Act
- The SEC and CFTC both submitted regulatory reviews related to crypto oversight
- Analysts warn that the rally might quickly reverse if regulatory progress halts or Bitcoin drops
On Wednesday, crypto stocks and digital assets experienced a significant upward movement after US President Donald Trump expressed support for crypto legislation and regulators indicated a change in their approach to the industry.
Bitcoin climbed above $73,000 for the first time in about a month, rising by over 7.6% in 24 hours. Ether also increased by more than 8.3%, trading around $2,132.
The stock gained roughly 15% during the trading session, trading near $209. Strategy, the largest public Bitcoin treasury holder, rose about 11.5%. Miners also showed gains, with Hut 8 up 13.89% and American Bitcoin Corp rising 11.65%.
Circle’s stock traded at $102.10, up 2.51%, after the company reported a fourth-quarter earnings per share of $0.43, surpassing the estimate of $0.35. Circle also reported quarterly revenues of $770 million.
The stock rose 8.31%, trading near $82.38. The stock of Ethereum treasury company Bitmine gained over 9% as Ether reached highs above $2,100.
Ark Invest purchased approximately $4 million in Coinbase stock and $12 million in Robinhood stock on Tuesday, during a period of market uncertainty.
Strategy currently holds 713,502 Bitcoin at a cost basis of around $54.26 billion. Despite the gains on Wednesday, Coinbase stock is still down approximately 31.79% over the past six months.
Trump’s Comments and the CLARITY Act
At a White House press conference, Trump stated that the US aims to be “dominant” in crypto. He also urged the Senate to pass the crypto market structure bill known as the CLARITY Act and criticized banks for their slow progress on it.
Dominick John, an analyst at Zeus Research, told Cointelegraph that regulatory clarity is a crucial driver. He pointed to the CLARITY Act, spot ETF inflows, and the executive branch’s support for a digital asset framework as factors contributing to the rise of crypto stocks.
Pav Hundal, lead analyst at Swyftx, said that the market is currently factoring in a policy premium. He described Coinbase as the clearest large-cap manifestation of crypto policy optimism in US equities.
Regulators Move on Crypto Rules
The SEC filed a pending application on Tuesday regarding federal securities laws and how they apply to certain crypto transactions. The CFTC also filed a regulatory review for prediction markets.
Analysts regarded these actions as steps towards a more transparent regulatory framework for digital assets in the US.
Hundal cautioned that the rally is based on expectations of political progress. He said that a slowdown in the regulatory process, a halt in the CLARITY Act, or a decline in Bitcoin could rapidly reverse the gains in crypto stocks.
