Crypto-related stocks jumped on Wednesday as pro-crypto remarks from the US presidential campaign helped lift Bitcoin and the broader digital asset market.
As the crypto market gained momentum, Bitcoin treasury firm Strategy climbed more than 10%. Crypto exchange Coinbase rose over 14%, while mining company Hut 8 gained 13.89% and American Bitcoin Corp advanced 11.65%.
Dominick John, an analyst at Zeus Research, told Cointelegraph that expectations of clearer crypto regulations in the near future may be contributing to the rally.
“Crypto equities are rallying as regulatory risk is being fundamentally redefined. With the executive branch championing a clear digital asset framework, coupled with robust spot ETF inflows and the potential passage of the Clarity Act,” he said.
“The trend will persist as regulatory clarity strengthens and institutional flows accelerate. With policy risk receding and product demand expanding, crypto equities have room to reprice higher in the medium term.”
Wall Street’s top regulators are also moving forward with plans to oversee the crypto sector. The Commodity Futures Trading Commission has initiated a regulatory review of prediction markets, while the US Securities and Exchange Commission filed an application on Tuesday addressing how federal securities laws apply to certain crypto assets and transactions.
Trump’s comments add momentum to crypto
Pav Hundal, lead analyst at Australian crypto platform Swyftx, told Cointelegraph that recent remarks from US President Donald Trump criticizing banks and urging the Senate to pass a crypto market structure bill may also be driving the rally.
Speaking at a White House press conference, Trump reiterated that the US aims to lead in the crypto space, saying, “In crypto, we want to be dominant; we want to be dominant in everything we do,” according to Fox 2 Detroit.
“The market is currently pricing in a policy premium, which is pushing crypto stocks higher,” Hundal said.
“We’re seeing a double effect: Trump pressing Congress to advance legislation while also criticizing US banks for delaying progress on the CLARITY Act. In US equities, Coinbase is probably the clearest large-cap play tied to that narrative,” he added.
Rally may fade if momentum slows
The broader crypto market has also surged. Bitcoin has climbed more than 7.6% in the past 24 hours to around $72,866, while Ether has gained over 8.3%, trading near $2,132.
However, Hundal warned that the rally could lose steam if regulatory progress stalls or if Bitcoin’s price declines.
“Crypto stocks are rising on expectations of political progress, and that momentum could continue,” he said. “But things move quickly with this White House. If the regulatory discussion loses momentum or Bitcoin falls, a correction wouldn’t be surprising.”
“Coinbase is pricing policy optionality, miners are pricing operating leverage on the leading asset by market capitalization in the sector. It works while BTC holds up, and can still unwind fast if this momentum hits a snag.”
