Bitcoin Reclaims $72,000 as Geopolitical Tensions Ease; Crypto Infrastructure Stocks Slump

Bitcoin surged past the $72,000 threshold on Thursday, reflecting a broader rally in risk assets as geopolitical tensions in the Middle East showed signs of abatement. The cryptocurrency's climb to its highest level in over three weeks coincided with gains in U.S. equity indices, with the Nasdaq rising 0.8% and the S&P 500 advancing 0.6%. The market optimism was fueled by reports that Israeli Prime Minister Benjamin Netanyahu has instructed his cabinet to pursue direct negotiations with Lebanon. This shift follows pressure from U.S. officials and a change in the diplomatic approach of the Trump administration, which recently announced a ceasefire with Iran. Despite the BTC rally, Circle (CRCL) shares plummeted 9.9% to $85.10. Compass Point downgraded the stock to 'Sell' with a price target of $77, citing concerns that USDC supply is shifting toward lower-margin revenue-sharing agreements on platforms such as Binance, Sky, and Ethena. The brokerage warned that the stock's valuation—currently 40 times 2027 adjusted EBITDA estimates—is overly optimistic and that gross margins may contract in the first half of 2026. Bullish (BLSH) also declined 6.5% to $36.12 following a downgrade to 'Neutral' by Rosenblatt. Analysts noted that the company trades at a premium of 28 times consensus adjusted EBITDA compared to peers like Coinbase and Robinhood. The firm added that estimates are becoming more vulnerable as general crypto activity weakens and IPO-related boosts to non-trading revenue fade. The divergence between the underlying asset and the infrastructure equities highlights a growing investor focus on fundamental margins and valuations within the crypto ecosystem, even as macro conditions remain supportive.