Trump's Call for Crypto Rules Sparks Rally in Bitcoin and Related Stocks
U.S. President Donald Trump's call for clear rules on digital assets sparked a rally in cryptocurrency-related stocks and prices, which had been struggling due to higher yields on safer investments.
The Treasury Department announced it would support more long-duration bonds, boosting risk assets. However, the intervention was relatively small and offered only short-lived relief for bonds.
Analysts said that while the move provided a positive signal for crypto, the rally in crypto was fueled by 'a wave of short-covering, following weeks of extremely narrow trading.'
Bitcoin rose 3.8% to cross the US$70,000 mark, while Ether gained 3.3%, its highest level in over three months. Other cryptocurrencies and related stocks also saw significant gains.
However, it's worth noting that Bitcoin has lost about 18% so far this year and remains down about 43% from its record high in October.