US Stock Crypto Concept Stocks Soar Together, Strategy Up Nearly 12%, Coinbase Up 9%

BlockBeats News, August 20th. As Bitcoin approached $70,000, crypto-related stocks saw their largest single-day gain since the summer on Wednesday. Stocks such as Strategy (MSTR), Coinbase (COIN), Circle (CRCL), and BitMine (BMNR) all surged.

Among them, the Bitcoin reserve company Strategy saw its stock price rise by 11.95% to $103.58, with an intraday surge of over 13%; the crypto exchange platform Coinbase rose by 9.05% to $159.47; the stablecoin issuer Circle rose by 9.44% to $78.50; and the Ethereum reserve company BitMine rose by 9.68% to $20.05.

This rally was mainly driven by a Bitcoin short squeeze. As Bitcoin surged towards $70,000, a large number of short positions were liquidated, resulting in nearly $2 billion in liquidations in the past 24 hours in the crypto market. At the same time, the U.S. Treasury expanded its long-term bond repurchase size, improving market liquidity expectations and causing a broad rise in risk assets.

Stocks such as Strategy and Coinbase were also affected by short covering. Both companies were previously part of Wall Street's highly shorted stocks. With the rapid price rebound, some short sellers were forced to buy back to cover their positions, further amplifying the gains.

Currently, Strategy holds about 840,000 Bitcoins, and its stock price is highly correlated with BTC's price; BitMine holds about 5.82 million ETH, making it one of the listed companies with the closest exposure to Ethereum on the market.

However, despite this noticeable rebound, Strategy, Coinbase, and BitMine are still down for the year. The market is still observing whether Bitcoin can break through and hold above the resistance around $70,000 to determine whether this rally is a trend reversal or a short-term squeeze.