Investors witnessed a rally in crypto-related stocks on Monday, primarily driven by Circle (CRCL) and Coinbase (COIN), buoyed by both the ascent of bitcoin (BTC) above $80,000 and progress toward U.S. digital asset legislation. Circle’s shares soared 18%, while Coinbase experienced a 7% rise, with BitGo (BTGO) also gaining around 10%. Additional gains were seen in Strategy (MSTR), Robinhood (HOOD), and Bitmine (BMNR), each climbing by about 3%-4%, indicating a widespread market uplift.
Bitcoin reached its highest price since late January during the session, crossing $80,416.63, which fueled optimism throughout the sector. Over the last day, BTC increased nearly 2%, outpacing the CoinDesk 20 Index’s 1.2% rise.
Investor confidence was further bolstered by progress on the Digital Asset Market Clarity Act, a crucial piece of legislation aimed at regulating crypto markets in the U.S. A compromise text released Friday suggests prohibiting yield from idle balances for stablecoin issuers but permits rewards linked to usage and transactions, addressing one of the bill’s most controversial points.
Markus Thielen, founder of 10x Research, described this development as a key step towards legislation passage. “The recent compromise eliminates one of the last hurdles,” said Thielen in a Telegram message. He anticipates lawmakers may proceed to formal markup shortly, potentially within the week.
The likelihood of passing the bill has increased on Polymarket, with odds now at 64%. This shift is seen as markets start recognizing potential beneficiaries, such as Circle, which could benefit from stablecoin regulations that favor their use as payment tools over yield-bearing assets, according to Thielen. Moreover, anticipation around Circle’s upcoming earnings report adds further impetus for its stock. Since releasing last quarter’s results in February, the company saw a near 100% surge in share prices, with investors possibly positioning for additional gains ahead of the announcement.