Cryptocurrency-related stocks rose on Wednesday as recent pro-crypto comments from the US President pushed Bitcoin and the broader cryptocurrency market higher.
Along with the rally in the cryptocurrency market, the company’s Bitcoin (BTC) treasury strategy is up more than 10%. Cryptocurrency exchange Coinbase posted gains of more than 14%, while mining company Hut 8 posted gains of 13.89% and US company Bitcoin Corp rose 11.65%.
The promise of clearer regulations on the near horizon may be one factor fueling the rally, Dominic John, an analyst at Zeus Research, told Cointelegraph.
“Cryptocurrency stocks are rising as regulatory risk is fundamentally redefined. With the executive branch supporting a clear framework for digital assets, coupled with strong spot ETF flows and the potential passage of the Clarity Act,” he said.
“This trend will continue as regulatory clarity strengthens and institutional flows accelerate. As policy risks recede and product demand expands, crypto stocks have room to reprice higher in the medium term.”
Major Wall Street regulators have advanced plans to oversee the industry, with the Commodity Futures Trading Commission filing a regulatory review of prediction markets, and the U.S. Securities and Exchange Commission filing pending Tuesday on federal securities laws and how they govern certain cryptocurrencies and transactions.
Trump’s statements helped boost cryptocurrencies
Pav Hundal, lead analyst at Australian cryptocurrency platform Swyftx, told Cointelegraph that US President Donald Trump’s recent hit on banks and his demand to pass a cryptocurrency market structure bill in the Senate could also play a role.
During a press conference at the White House, Trump also asserted that “in crypto, we want to be dominant; we want to be dominant in everything we do,” Fox 2 Detroit reported on Wednesday.
“The market is putting a political premium on the tape right now, and it’s inflating crypto stocks,” Hundal said.
“We have the double whammy of Trump pushing Congress on legislation and doing battle with US banks over their drag on the Clarity Act. Coinbase is basically the cleanest expression of that in US stocks,” he added.
The rally could still be dampened by bad news
The broader cryptocurrency market has also seen a significant rise. Bitcoin jumped more than 7.6% over the past 24 hours to trade at $72,866, according to CoinGecko, while ethereum (ETH) rose more than 8.3%, to trade at $2,132.
However, Hundal warned that if the expected regulatory progress stalls or Bitcoin declines, the stock’s rally could stall and decline as well.
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“Cryptocurrency stocks are clearly rising on the hope of political progress, and there’s no reason why it can’t continue. But things are changing quickly with this White House. If we see this regulatory debate stalled, or hit a wall, or Bitcoin takes a hit, it’s not hard to imagine a correction.”
“Coinbase is a pricing policy option, where miners price operating leverage on leading assets by market cap in the sector. It works while Bitcoin holds up, and can still pull back quickly if this momentum hits a snag.”
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