Why Bitcoin and Strategy Stock Are Rallying Against All the Odds — Barrons.com
By George GloverThe collapse of the Clarity Act and a Federal Reserve interest-rate hike ought to have been a toxic combination for Bitcoin, but the world's largest cryptocurrency was showing its resilience on Friday.The token has risen 5.5% to $80,940 over the past 24 hours. It's still about 36% off the record high it hit last October.Crypto stocks were surging, too. Shares of Bitcoin investor Strategy rose 12% early Friday. Digital-asset exchange Coinbase climbed 10.4%, on track for its best day since March 4, and online trading platform Robinhood added 8%.Bitcoin has rallied despite two potential setbacks this week.The Clarity Act, a key crypto bill, fell in the Senate on Tuesday. The following day, the Fed raised rates for the first time in more than three years.The crypto regulation stalling wasn't too much of a worry-investors had already accepted that the Clarity Act was unlikely to pass this year.After the decision, the Securities and Exchange Commission and Commodity Futures Trading Commission said they would still write crypto rules, with or without legislation.Similarly, the market was already pricing in a potential Fed tightening cycle. The good news for crypto bulls is that oil prices have retreated in recent days, which could weaken the case for future rate hikes.Write to George Glover at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.