Bitcoin Hits Seven-Month High as Regulatory Decision Boosts Crypto Stocks
Crypto-linked stocks are on the rise in premarket trading following a sharp rebound in Bitcoin, which has reached its highest level in more than seven months.
The world's largest cryptocurrency has extended its recovery after a U.S. regulatory decision expanded the scope for on-chain trading of tokenized stocks, while falling oil prices have eased broader inflation worries.
Investors appear to be looking past the hawkish tone that followed last week's Federal Reserve rate increase, which lifted the benchmark rate to 4.00%.
Bitcoin was last up 5.1% at $84,435.90 as of 06:17 ET (10:17 GMT), bringing its weekly gain to roughly 5%. The token had briefly dropped below $76,000 in the wake of the Fed's decision before rebounding over the weekend.
The rally follows a decision last Thursday by the U.S. Securities and Exchange Commission to grant a temporary five-year exemption allowing qualifying trading venues to offer tokenized U.S. stocks on blockchain-based platforms, subject to certain conditions.