Strategy jumps 10% as crypto stocks rebound with bitcoin near $60,000

Bitcoin rose 2.9% to $59,972 as of 14:00 UTC on July 1, leading a broad rebound in crypto-exposed equities after a stretch of heavy selling that pushed the world's largest cryptocurrency to its lowest level since 2024.

The recovery pushed bitcoin back above the $59,000 support level that traders had been watching, recovering from a low of around $58,000 hit on June 25, according to CoinGecko data. The CoinMarketCap Crypto Fear and Greed Index had flashed "extreme fear" during the selloff, reflecting the depth of a downturn that has seen bitcoin lose more than half its value since an October peak near $126,000. Trading volumes remained elevated, with the selloff having triggered cascading liquidations across major exchanges.

Strategy, the enterprise software company known for holding bitcoin on its balance sheet, rose nearly 10%, its strongest single-day gain since announcing a $1.25 billion bitcoin monetization program on June 29. The stock had fallen below $90 for the first time in two years during the selloff, while the company's Stretch preferred stock slid to an all-time low of $74, roughly 25% below its $100 par value. Coinbase gained nearly 6%, while Circle and Robinhood each rose more than 4%. Ethereum, the second-largest cryptocurrency, climbed 3.1% to $1,612.

The rebound came as the broader equity market showed signs of strength, with the S&P 500 and Nasdaq 100 posting gains on the first trading day of the third quarter. The U.S. dollar index slipped 0.3% to 101.10, while the 10-year Treasury yield held above 4.37%. The macro backdrop remains challenging for risk assets, with the Federal Reserve's preferred inflation gauge rising to a three-year high of 4.1% in May and Chair Kevin Warsh indicating a willingness to raise interest rates this year.

The coordinated rebound offers a temporary reprieve for a sector that has shed more than $2 trillion in market value since bitcoin's peak. Traders are now watching whether the world's largest cryptocurrency can reclaim the $60,000 psychological level, with the next major resistance at $65,000.

This article is for informational purposes only and does not constitute investment advice.