Key Notes
- Bitcoin is holding steady at $92,500, above the Short Term Holder Realized Price of $92,107, historically a signal that the market could continue rising.
- Crypto-related stocks have surged, with MicroStrategy up 14.17%, Coinbase gaining 7.20%, and MARA Holdings increasing by 8.41%, indicating growing investor optimism.
- President Trump's announcement of a crypto strategic reserve has created market excitement by suggesting digital assets could become part of national economic policy, while the SEC's potential dismissal of its Coinbase case has reduced regulatory concerns.
In a significant development, market data from last weekend shows that Bitcoin BTC $86 435 24h volatility: 8.3% Market cap: $1.72 T Vol. 24h: $68.68 B may be making a potential rebound. This follows after the coin climbed back above the $92,000 mark after dropping to as low as $80,000 in February.
According to reports, the rally started moments after President Donald Trump announced a crypto strategic reserve. As it turns out, this announcement may have also spurred a major rally in crypto related stocks.
Overall, there is a feel within the market that investors might be regaining their confidence in the digital asset economy.
Bitcoin’s Comeback and the Stock Market Boost
Bitcoin’s recent surge is more than just an increase in price. More importantly, it signals a shift in market sentiment.
Besides, it might be worth mentioning that BTC has been holding steady at around $92,500, which is above a key price level known as the Short Term Holder Realized Price (STH RP).
For clarity, the STH RP currently sits at $92,107, tracking the average cost of Bitcoin purchases over the past 155 days. As history suggests, when Bitcoin stays above the level, it is usually a sign that the market is about to pivot upwards, which invariably means that prices could continue rising.
Incidentally, this recovery has also fueled gains in stocks connected to Bitcoin and other digital assets. Currently, Strategy ( MSTR ), which holds the largest amount of Bitcoin in circulation, saw its stock increase by 14.17% to $291.43.
Similarly, Coinbase (COIN), the largest US based crypto exchange, gained 7.20%, now trading at $231.14. MARA Holdings (MARA), rose by 8.41% to $15.09, while IREN Ltd. (IREN) also climbed 7.04%, bringing its stock price to $8.82. These gains suggest that investors are feeling more optimistic about crypto related businesses.
What is Driving the Crypto Market Rally?
Notably, there appears to be several factors behind the recent resurgence in the market. For example, the US Securities and Exchange Commission (SEC) has recently made it known that there are possibilities of ending its legal action against Coinbase. Although this prolonged legal battle has cast a shadow of doubt over the exchange, a dismissal, as the SEC may have hinted, would be a major victory for the crypto sector. More so, as it would ease market worries about overly strict regulations.
Furthermore, corporate investors like Strategy (MSTR) are also stacking up on their Bitcoin. The firm recently added $2 billion worth of BTC to its holdings. Such actions show that major investors are prepared to make significant investments and still have faith in Bitcoin’s future.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
