Bitcoin climbed more than 7% on Monday to a 7.5-month high, adding to a 5% gain the prior Friday, after the SEC moved forward with a plan to allow digital versions of securities to trade in the United States, according to Nasdaq.
The crypto advance fed directly into equities tied to digital assets. Strategy closed up more than 9% and BitMine Immersion Technologies gained more than 7%, while Bullish and Galaxy Digital Holdings each rose more than 5%. Coinbase Global added more than 3%, with Circle Internet Group and Robinhood Markets up more than 2% and Riot Platforms and Iren Ltd up more than 1%.
Also read: Bitcoin Tops $80,000 as 10-Year Yield Hits 5% and Japan Hikes
Key facts
- Bitcoin rose more than 7% on Monday to a 7.5-month high, following a 5% surge last Friday.
- The S&P 500 closed up 1.49% at a 5-week high, while the Nasdaq 100 gained 2.83% to a 3-month high.
- WTI crude sank more than 4% to a 1.5-week low, and the 10-year T-note yield fell about 3 basis points to 4.96%.
- ARM Holdings closed up more than 16%, and Intel closed up more than 12%.
- Markets are pricing a 55% chance of a 25 basis point Fed rate hike at the October 27-28 FOMC meeting.
Chipmakers and AI names drive the tape
The iShares Semiconductor ETF closed up more than 4% at a 5-week high, with Advanced Micro Devices and Qualcomm each up more than 9%, Marvell Technology up more than 6%, and Applied Materials and Lam Research up more than 5%. KLA Corp added more than 4%.
The Magnificent Seven also moved higher. Meta Platforms gained more than 11% after its new Muse artificial intelligence app reached the top of mobile app charts. Tesla rose 3%, Nvidia more than 2%, and Alphabet, Amazon.com and Microsoft each added more than 1%. Apple closed up 0.85%.
Also read: Bitcoin Jumps 5% as SEC Advances Digital Securities Plan
Cryptocurrency was not the only sector reacting to the oil move. With fuel costs in focus, United Airlines Holdings closed up more than 5% and American Airlines Group more than 4%, while Delta Air Lines and Alaska Air Group each gained more than 3%. Energy names moved the other way: Marathon Petroleum fell more than 5% to lead S&P 500 decliners, Phillips 66 and Valero Energy each lost more than 4%, and Chevron dropped more than 2% to lead Dow losers.
Why it matters
The session shows how quickly crypto sentiment can shift when a regulatory gate opens. An SEC framework for tokenized versions of securities would put digital-asset trading rails closer to mainstream equity markets, which is the read that lifted both Bitcoin and listed companies whose balance sheets or businesses are tied to it. Just as important, the rally was not crypto-only: falling crude eased inflation expectations, pulled yields lower and supported growth and chip stocks at the same time.
That combination is fragile. Two Fed presidents struck a hawkish tone Monday. Chicago Fed President Austan Goolsbee said restoring price stability may require further rate increases, which he said could reduce employment, wages and growth. St. Louis Fed President Alberto Musalem said core inflation may be running a full percentage point above the Fed’s 2% target and that further hikes are likely needed.
What to watch
Attention now turns to a summit later this week between Presidents Trump and Xi Jinping, which Nasdaq reported is supporting equities on optimism over US-China talks covering artificial intelligence, trade and investment. Traders will also watch the October 27-28 FOMC meeting, the October 29 ECB meeting, and this week’s Treasury auctions, which begin with $69 billion of 2-year T-notes on Tuesday.
None of this is financial advice, and cryptocurrency and equity markets remain volatile and uncertain.
Source: Nasdaq
