Crypto-linked stocks surge as Bitcoin spikes past $71,000

Bitcoin price soared by 5% early Tuesday, sparking a rally in U.S.-listed crypto shares as investors set their sights on ambitious new targets for the original cryptocurrency.

The crypto leader broke above $71,000 in Asian morning trading, leading the broader market higher just days before the U.S. election—a moment many traders view as a bullish catalyst for crypto regardless of the outcome.

MicroStrategy Incorporated (NASDAQ:MSTR ), the world’s largest corporate backer of Bitcoin, saw its shares jump nearly 9% to reach around $255. America’s biggest crypto exchange Coinbase (NASDAQ:COIN ) also saw a strong boost, bouncing up to $205 after a recovery from August lows. 

The crypto mining crowd had a good day too, with Riot Platforms (NASDAQ:RIOT ) up over 6.7%, Marathon Digital Holdings Inc (NASDAQ:MARA ) climbing 4%, and CleanSpark (NASDAQ:CLSK ) rising by 5.3%, all riding the wave of positive crypto momentum.

The market movement came as the U.S. stock indexes wrapped the day in positive territory, with the Dow Jones rising 0.7% and both the Nasdaq and S&P 500 advancing by 0.3%. 

Bitcoin rally gains revived interest in the cryptocurrency, driving trading volume up to $47.5 billion—almost double what it was just days ago. This surge also triggered over $143 million in liquidated short positions, as traders scrambled to close bets against Bitcoin’s rise. Short positions on Bitcoin alone lost around $73 million, with Ethereum shorts trailing closely, down $39 million, based on CoinGlass data. 

Bitcoin is now just 3.4% away from reclaiming its all-time high of $73,700 set back in March. With Donald Trump’s chances for the presidency looking solid and historical data suggesting favorable market conditions, traders are betting on a “perfect storm” for Bitcoin prices next month.

The “Trump trade” narrative is building as well, with analysts noting a growing correlation between Bitcoin’s price movement and a potential Trump victory on Nov. 5. Trump is currently favored over Kamala Harris by a 30% margin on the decentralized betting platform Polymarket, even as national polls show a closer contest with Harris leading by 1.5%.

Source: Investing.com