Digital asset treasury firms, which have faced considerable pressure in recent months, experienced a sharp rally, with some seeing gains of up to 20%. This positive sentiment permeated broader markets, evidenced by a slump in oil prices and fresh record highs for the S&P 500 and Nasdaq.
Key altcoins such as Ethereum (ETH), XRP, and Solana (SOL) also benefited from the bullish trend, each registering gains of 4-5%. This widespread boost in the crypto market underscores a renewed investor confidence following geopolitical breakthroughs.
US President Donald Trump announced via Truth Social that Iran had pledged to maintain the openness of the Strait of Hormuz, a critical conduit for global energy. Trump also highlighted progress in peace negotiations between the nations, further calming investor nerves.
The market was additionally buoyed by reports indicating that the US is considering unfreezing $20 billion in Iranian assets, alongside discussions about acquiring Iran's enriched uranium as part of a comprehensive deal. These developments collectively alleviated fears of a protracted energy crisis.
Consequently, crude oil prices plummeted by 13%, settling near $80 per barrel. Matt Mena, a senior crypto research strategist at digital 21shares, described the reopening of the Strait of Hormuz as the "risk-on signal the global markets have been waiting for." He added that this move has effectively "uncorked a massive wave of liquidity and investor confidence."
Mena further suggested that with oil prices dipping below $85 for the first time in a month, long-standing inflation fears might finally begin to subside. Bitcoin's ascent to $78,000 marks its breakout from a two-month trading range, reflecting nearly a 5% gain over the last 24 hours.
Among crypto-related equities, firms holding digital assets on their balance sheets were the standout performers. Trump-family-backed American Bitcoin (ABTC) soared by more than 21%, while Strategy (MSTR) recorded a 13% increase. Strive (ASST) and ProCap (BRR) also saw gains of approximately 10-11%, as investors re-engaged with high-beta Bitcoin exposure.
