On Thursday, cryptocurrency-related stocks experienced a significant surge following a notable rally in Bitcoin, which soared past the $100,000 mark for the first time. The upswing in the digital currency's value came on the heels of President-elect Donald Trump's supportive stance towards cryptocurrencies. The market reacted positively to Trump's decision to appoint Paul Atkins as the new Chair of the Securities and Exchange Commission (SEC), replacing Gary Gensler, who had previously taken a stringent approach to regulating digital assets.
Bitcoin, the most prominent cryptocurrency, witnessed a 5.3% increase, reaching a new high near $104,000. This rally is attributed to Trump's pro-crypto selection for the SEC leadership, which has been seen as a favorable shift for the industry. The previous SEC chair, Gensler, had enforced strict regulations following a tumultuous market in 2022 that revealed fraudulent activities within the crypto space and resulted in significant financial losses.
The premarket trading session revealed substantial gains for various companies with exposure to cryptocurrency. Riot Platforms (NASDAQ:RIOT) saw a 6% rise in its shares, while MARA Holdings' stock climbed by 5%. Bit Digital's shares increased by 5%, and MicroStrategy, known for its substantial Bitcoin holdings, enjoyed a 8% uptick. Furthermore, Coinbase (NASDAQ:COIN), a leading cryptocurrency exchange, experienced a 4.5% gain.
Additional companies benefiting from the Bitcoin rally included CleanSpark (NASDAQ:CLSK), with a 5.3% increase in share price, and Hut 8 (TSX:HUT) Mining, which went up by 6.6%. Cipher Mining (NASDAQ:CIFR)'s shares grew by 5%, Hive Blockchain by 5.3%, Bakkt by 6.9%, and Bitfarms by 6.5%. The broad-based gains across the sector reflect the market's optimism towards the future of digital assets under the incoming SEC leadership.
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