Key facts
- Cryptocurrency-related stocks surged on Thursday.
- The U.S. Treasury Department announced it would support more long-duration bonds.
- U.S. President Donald Trump urged Congress to pass legislation for digital assets.
- Bitcoin rose 3.8% and crossed the $70,000 mark.
- Coinbase Global gained 5.7%, MicroStrategy rose 5.8%, and Canaan surged 12.5%.
Cryptocurrency-related stocks experienced a significant surge on Thursday, driven by two key developments: the U.S. Treasury Department's announcement of increased support for long-duration bonds and U.S. President Donald Trump's call for clear digital asset legislation.
The Treasury's decision to double buyback sizes for long-duration debt came in the wake of a substantial bond selloff that pushed the 30-year Treasury yield to its highest level since 2007. While higher yields typically dampen enthusiasm for risk assets like cryptocurrencies by making safer investments more attractive, the Treasury's intervention, though small, was interpreted as a positive signal for the crypto market.
Analysts noted that the rally was further fueled by short-covering after weeks of stagnant trading. Bitcoin, the world's largest cryptocurrency, rose 3.8% to cross the $70,000 mark for the first time since June. Ether also gained 3.3%, reaching its highest level in over three months. Several crypto-related stocks saw notable increases, including Coinbase Global, which climbed 5.7%, MicroStrategy, up 5.8%, and bitcoin mining machine maker Canaan, which surged 12.5%. Stablecoin issuer Circle gained 3.8%, and retail trading platform Robinhood advanced 1%.
President Trump's advocacy for digital asset legislation, a key policy priority for the industry, also contributed to the positive sentiment. He urged lawmakers to pass a "fair version of the Clarity Act," which is currently stalled in the Senate. Trump has previously expressed a commitment to making the U.S. the "crypto capital of the world."