US Crypto Stocks Surge Strongly, Led by Coinbase, as Market Reacts Positively to Iran-Israel Ceasefire, Despite Ongoing Uncertainties.
US crypto-related stocks recorded a strong increase in Tuesday's trading session, led by Coinbase, due to an optimistic sentiment stemming from the recently announced ceasefire between Iran and Israel, though long-term stability prospects remain uncertain.
The ceasefire, mediated by President Donald Trump, created a short-term wave of optimism in the global financial market. However, geopolitical instability remains evident, especially after reports of missile launches from both sides immediately following the announcement, along with Trump's statement acknowledging the possibility of agreement violations.
Despite these risk factors, the risk-on sentiment spread strongly, especially in the cryptocurrency sector. Coinbase Global Inc. (COIN) was the trading session's focal point, rising most significantly in the S&P 500 index with an impressive 12.10% increase. This positive momentum was not limited to Coinbase but also spread to other industry stocks.
Major crypto mining companies like Riot Platforms and Marathon Digital increased by 8.09% and 4.94% respectively. MicroStrategy (MSTR), known for its large Bitcoin portfolio, also benefited with a 2.68% increase, reflecting the close correlation with the overall crypto market's optimistic sentiment.
Robinhood Markets, Inc. (HOOD) saw a 7.41% increase, partly due to a new crypto deposit promotion program. However, not all crypto-related stocks rose. Notably, Circle Internet Group's stock (CRCL), the company behind USDC stablecoin, dropped significantly by 15.49%. Nevertheless, this is an adjustment after a strong price surge of nearly 620% since the company's listing in early June.
Against the backdrop of crypto stocks' revival, the digital asset market generally maintained a positive recovery trend. Bitcoin continued to hold its upward momentum, trading around $106,487, increasing 1.20% within 24 hours. This development is further driving industry businesses' interest and expansion plans, especially as the large exchange OKX is considering an IPO in the US.
