Crypto Stocks Surge as Market Structure Rules and Regulatory Support Boost Prices
Cryptocurrency-related stocks experienced broad gains on Friday, with Circle (CRCL.US) leading the way at nearly 10% growth. Coinbase (COIN.US) followed closely behind, rising by 9%. Strategy (MSTR.US) also saw significant increases, climbing over 6%, while Bitmine Immersion Technologies (BMNR.US) and SharpLink (SBET.US) both advanced more than 4%. CleanSpark (CLSK.US) rose slightly under this threshold.
The news came as Bitcoin prices surged to a high of $79,000 on August 21, breaking above the previous intraday record. Ethereum also reached new heights, briefly touching $2,400. This market activity has been attributed in part to the growing awareness of cryptocurrency market structure rules and potential regulatory changes.
According to Zhitong Finance APP, cryptocurrency-related stocks have seen a significant increase in recent days. The Chairman of the U.S. Commodity Futures Trading Commission (CFTC) stated that even if Congress fails to pass the CLARITY Act, the crypto industry will still receive market structure rules.
Sun Wei, Senior Researcher at HashKey Group, attributed the gains to a 'premeditated short squeeze', pointing out that during periods of high volatility, the market accumulated significant leveraged short positions. As prices moved above $65,000, these crowded short positions became evident, leading to panic covering by short sellers.
President Trump's meeting with cryptocurrency industry executives at the White House on Wednesday further contributed to the market's upward trend. He urged Congress to pass legislation on cryptocurrency market structure as soon as possible and indicated that he would consider recommendations from regulatory agencies regarding further government acquisition of Bitcoin.