Geopolitical De-escalation Sparks Risk-On Rally in Crypto and Equities

Global risk assets experienced a sharp rebound Friday following announcements that Iran has committed to keeping the Strait of Hormuz open, effectively removing a critical geopolitical chokepoint for global energy markets. U.S. President Donald Trump indicated that peace talks are progressing and mentioned the potential unfreezing of $20 billion in Iranian assets, alongside discussions regarding enriched uranium. This sudden shift in sentiment led to a 13% plunge in crude oil prices, which fell toward $80 per barrel. Market analysts suggest that the reopening of the Strait has acted as a primary risk-on signal, alleviating fears of a prolonged energy shock and potentially curbing inflation expectations. Bitcoin responded aggressively to the news, breaking out of a two-month range to hit $78,000, gaining nearly 5% within 24 hours. This momentum extended to major altcoins, including Ether, Solana, and XRP, which all posted gains between 4% and 5%. Crypto-linked equities, particularly digital asset treasury firms, saw the most significant gains. American Bitcoin (ABTC) jumped over 21%, while MicroStrategy (MSTR) rose 13%. Other high-beta names such as Strive (ASST) and ProCap (BRR) climbed between 10% and 11% as investors rotated back into digital asset exposure. The rally extended to infrastructure and exchanges, with Coinbase (COIN) rising more than 6% and Galaxy (GLXY) gaining 8%. The broader U.S. equity market mirrored this optimism, with the Nasdaq and S&P 500 both rising approximately 1.4% to reach new record levels.