Bitcoin's Rebound Sparks Crypto Stock Surge Amid $1 Billion Bearish Liquidations

Crypto-related stocks in the US jumped across the board as Bitcoin rebounded near $70,000. Strategy rose 11.95% to $103.58, while Coinbase gained 9.05% to $159.47. Circle and Bitmine also saw significant gains, with Circle rising 9.44% to $78.50 and Bitmine climbing 9.68% to $20.05.

The surge was driven by Bitcoin's rebound, which saw over $1 billion in bearish positions liquidated within an hour. The US Treasury's announcement of a larger bond buyback program also supported risk assets overall.

Strategy and Coinbase, two large-cap stocks with high short interest, were particularly affected by the rally. Tom Lee, Chairman of Bitmine, noted that his company holds 5.82 million ETH, valued at around $11.4 billion, equivalent to 4.8% of ether supply.

The market is split on whether this rebound marks a trend shift or is limited to short covering within a downtrend. The upcoming policy event, including President Trump's discussion with top officials and the release of Federal Reserve minutes, may further increase volatility in related stocks.