Bitcoin rallies above $85k as tokenized-stock move boosts crypto sentiment

Bitcoin rallied above $85,000 on Monday, extending a rebound after a U.S. regulatory move allowed greater on-chain trading of tokenized stocks, while falling oil prices eased some inflation concerns.

Bitcoin was last up 5.7% at $85,138.9 by 09:35 ET (13:35 GMT), after gaining about 5% over the past week.

The cryptocurrency had fallen below $76,000 following last week’s Federal Reserve rate hike before recovering over the weekend.

SEC tokenization move boosts sentiment

The U.S. Securities and Exchange Commission on Thursday granted a temporary five-year exemption allowing qualifying venues to trade tokenized U.S. stocks on blockchain-based platforms, subject to conditions.

The agency said the move was intended to facilitate innovation while maintaining investor protections.

The decision has strengthened expectations that traditional financial assets could become more closely integrated with blockchain markets, lifting crypto-related equities and several major digital tokens.

Coinbase (NASDAQ:COIN) rose 12% on Friday, while Strategy (NASDAQ:MSTR) gained 16% and Robinhood (NASDAQ:HOOD) advanced 9%.

Zcash climbed about 3% to above $1,500, while NEAR surged roughly 23% as trading activity involving Zcash increased on its cross-chain swap service.

The broader risk environment also improved as Asian equities rose and U.S. stock futures gained following positive signals from U.S.-China trade discussions ahead of a meeting between President Donald Trump and Chinese President Xi Jinping.

Oil prices provided another tailwind. Brent crude fell about 2% to below $102 a barrel, extending a four-session decline as expectations of higher Middle Eastern supply eased concerns about inflation and energy costs. 

Still, higher U.S. Treasury yields and expectations of further Federal Reserve tightening remain potential headwinds for Bitcoin.

Strategy buys 950 more Bitcoin, pushing total holdings to 846,000 BTC

Bitcoin treasury firm Strategy purchased an additional 950 Bitcoins for roughly $75.7 million between September 14 and September 20, at an average price of $79,670 per coin, according to an 8-K filing with the Securities and Exchange Commission.

The latest purchase brings Strategy’s total holdings to 846,000 BTC, valued at approximately $71.9 billion, co-founder and executive chairman Michael Saylor said. The company’s cumulative average purchase price now stands at $75,416 per Bitcoin, for a total investment of roughly $63.8 billion including fees and expenses.