Bitcoin has surged past 87,000 USD for the first time in about eight months. The virtual asset market’s sharp rebound has led to a simultaneous jump in stock prices of related companies, including Strategy (formerly MicroStrategy) and Bitmain.
As of 9:55 a.m. (KST) on Tuesday, CoinMarketCap reported that the global Bitcoin price was trading at 85,947 USD, a 5.26% increase from the previous day. Earlier in the morning, it briefly touched 87,281 USD. This marks the first time Bitcoin has exceeded 87,000 USD since January, roughly eight months ago.
Altcoins are also showing strength. XRP rose by 6.81%, while Solana (SOL) gained 5.35%. The market appears to be quickly recovering from the recent setbacks caused by the defeat of the Clarity Act vote and the Federal Reserve’s interest rate hike.
The surge in virtual asset prices has sparked a buying frenzy for related companies listed on U.S. exchanges. On Monday, Strategy, the world’s largest Bitcoin holder, closed at 168.50 USD, up 9.47% from the previous trading day. Bitmain, which holds Ethereum (ETH), saw its stock climb 8.70% to 28.25 USD.
Coinbase, the largest U.S. virtual asset exchange, rose 3.50%. Circle, the stablecoin USDC issuer, and Robinhood, a platform for trading U.S. stocks and virtual assets, gained 2.95% and 2.90%, respectively. Analysts suggest that rising asset prices could boost trading volumes and asset values, driving stock prices higher.
Strategy’s gains were particularly notable following news of its resumed Bitcoin purchases. After a three-week pause, the company acquired 950 Bitcoins, bringing its total holdings to 846,000.
Strategy also bought about 174 million USD worth of its preferred shares (STRC). The simultaneous purchase of additional Bitcoin and repurchase of preferred shares has heightened expectations for increased shareholder value, contributing to the stock’s upward momentum.
Strategy’s Chief Executive Officrr (CEO), Pong Lee, emphasized that it will never cease the Bitcoin acquisition strategy.
Analysts attribute the recent surge in virtual assets to regulatory developments in the U.S. and the liquidation of large short positions. After the Clarity Act vote in Congress was shelved, the Security Exchange Comission (SEC) and the Commodity Futures Trading Commission (CFTC) began developing their own virtual asset regulations, helping to restore investor confidence.
As Bitcoin broke through key resistance levels, investors betting on price declines faced forced liquidations of their short positions, further accelerating the upward trend. CoinDesk reported that approximately 750 million USD in bearish positions were liquidated after Bitcoin surpassed the 82,000 USD resistance level that had held since last month.
Nikolai Sondergaard, a senior analyst at Nansen, cautioned that for this upward trend to continue, sustained inflows through spot markets and exchange traded funds (ETFs) are necessary. He warned that if leverage increases rapidly without sufficient spot demand, the market could surrender its gains due to rising interest rates or geopolitical shocks.
