TLDR
- Coinbase, Strategy, and Robinhood stocks climbed 2.8%, 1.9%, and 4% in Monday pre-market trading
- Trump’s weekend comments easing China tariff concerns sparked recovery across crypto markets
- Bitcoin jumped to $115,261 while Ethereum reached $4,174 after Friday’s massive selloff
- Crypto trading platforms earn higher fees when digital asset prices rise and volumes increase
- Strategy’s massive Bitcoin holdings make its stock performance directly linked to BTC price movements
Cryptocurrency stocks bounced back Monday morning after President Trump dialed back his aggressive stance on China tariffs. The recovery helped ease investor concerns following Friday’s brutal market crash.
Shares of Coinbase Global jumped 2.8% before the opening bell. Strategy, the company formerly called MicroStrategy, gained 1.9%. Online brokerage Robinhood Markets climbed 4% in pre-market activity.
The rebound followed Trump’s Sunday post on Truth Social. He wrote “It will all be fine” regarding U.S.-China relations. Days earlier, Trump had threatened 100% tariffs on China, triggering widespread market panic.
Bitcoin prices recovered to $115,261, posting a 3.55% gain over 24 hours. Ethereum showed even stronger momentum, rising 9.32% to reach $4,174. Both cryptocurrencies had plummeted Friday during what traders dubbed “Black Friday.”
Bitcoin Mining Stocks Join the Rally
Mining companies also participated in Monday’s recovery. MARA Holdings, the world’s largest Bitcoin mining operation, gained over 3%. Bitmine Immersion Technologies, focused on Ethereum mining, surged more than 6%.
The Friday crash wiped billions from cryptocurrency markets through forced liquidations. Investors dumped risk assets as trade war fears intensified. S&P 500 futures indicated a 1.4% gain for Monday’s opening.
Crypto exchanges Coinbase and Bullish both rose more than 2.6% in early trading. These platforms process billions in daily cryptocurrency transactions. Their revenue models depend heavily on trading activity levels.
How Crypto Stocks Make Money
Trading platforms like Coinbase and Robinhood collect fees on every cryptocurrency transaction. Higher prices typically drive more trading volume. Increased volume translates directly into higher revenue for these companies.
Strategy operates under a different business model. The firm maintains Bitcoin as its primary treasury reserve. When Bitcoin prices rise, Strategy’s holdings become more valuable, pushing its stock price higher.
Investors were waiting for Strategy’s weekly Bitcoin purchase report. The company usually releases these updates on Mondays. Market watchers wanted to see if Strategy bought coins before or after Friday’s price drop.
Strategy controls the largest corporate Bitcoin treasury in the world. Purchases before the crash would show fortunate timing. Buying after the selloff would demonstrate confidence in crypto’s future.
Market Conditions Improve
Trade tensions between Washington and Beijing showed signs of easing Monday. Trump’s conciliatory language helped restore market confidence. Oil prices also rebounded, providing another boost to investor sentiment.
The broader cryptocurrency market stabilized after Friday’s chaos. Bitcoin held above $115,000 while Ethereum maintained support above $4,000. Trading volumes remained elevated as investors repositioned their portfolios.
Futures markets indicated strength across major indices Monday morning. The recovery in crypto prices and Trump’s softer tone combined to lift market sentiment. Both Bitcoin and Ethereum gained ground as Asian and European markets opened.
