Crypto-related stocks rallied during the trading session on Wednesday as recent comments from the pro-crypto US president lifted Bitcoin and the broader crypto market.
Along with the rise of the cryptocurrency market, the Bitcoin (BTC) Strategy treasury company has increased by more than 10%. Crypto exchange Coinbase posted a gain of more than 14%, while miners Hut 8 rose 13.89% and American Bitcoin Corp rose 11.65%.
Dominic John, an analyst at Zeus Research, told Cointelegraph that the promise of clearer regulations on the near horizon could be one of the factors fueling the rally.
“Crypto stocks are rising as regulatory risk is fundamentally redefined. With the executive branch supporting a clear framework for digital assets, along with steady ETF inflows and potential passage of the Transparency Act,” he said.
“The trend continues with the strengthening of regulatory clarity and accelerating institutional flows. As policy risk diminishes and product demand expands, crypto stocks have the potential to move higher in the medium term.”
Major Wall Street regulators have advanced plans to oversee the industry, the Commodity Futures Trading Commission is proposing a regulatory review for futures markets, and the U.S. Securities and Exchange Commission on Tuesday is mulling federal securities laws and how they govern certain cryptocurrencies and transactions.
Trump’s comments helped the crypto rise
Pav Hundal, lead analyst at Australian crypto platform Swyftx, told Cointelegraph that US President Donald Trump’s recent backlash against banks and his call for crypto market structure legislation in the Senate could also be a factor.
During a press conference at the White House, Trump also reiterated that in “crypto, we want to be dominant; we want to be dominant in everything we do,” Fox 2 Detroit reported Wednesday.
“The market is now putting a policy premium on tape, and that’s driving crypto stocks higher,” Hundel said.
“We have the double whammy of Trump pushing Congress on legislation and fighting US banks to drag their heels over the CLARITY Act. Coinbase is literally the cleanest expression of that in US stocks,” he said.
The rally may turn to bad news
The broader crypto market has also experienced a surge. According to CoinGecko, Bitcoin is up more than 7.6% in the last 24 hours to trade at $72,866, while Ether (ETH) is up more than 8.3% at $2,132.
However, Hundal warned that the stock’s rally could also stall and retreat if expected regulatory progress dampens stocks or bitcoin.
related to: Trump sends pro-Bitcoin Fed chairman nomination to Senate
“Crypto stocks are clearly rallying in anticipation of political progress, and there’s no reason not to continue. But with this White House, things are changing quickly. If we see this regulatory debate getting stale, or hitting a wall, or Bitcoin hitting, it’s not hard to imagine a correction,” he said.
“Coinbase has a discretionary pricing policy, miners price operating leverage based on the market capitalization of the sector. It works while BTC is held, and if momentum breaks, it can quickly cool down.”
Magazine: Would Bitcoin Really Be $200K If Not For Jane Street? Trade secret
