Bitcoin's Rise Pushes Crypto Stocks Higher in Pre-Market Trading

Shares of cryptocurrency-related companies rose in premarket trading on Monday, underpinned by a sharp recovery in bitcoin. The world's largest cryptocurrency reached its highest level in more than seven months.

Bitcoin's rally continued after the U.S. Securities and Exchange Commission (SEC) approved a decision expanding opportunities for trading tokenized stocks on the blockchain. At the same time, falling oil prices eased broader concerns about inflation. Investors appeared to pay less attention to the hawkish tone reinforced by the Federal Reserve's rate hike last week.

At 06:17 ET (10:17 GMT), bitcoin's price was up 5.1% at $84,435.90, bringing its weekly gain to roughly 5%. Following the Fed's decision, the cryptocurrency briefly fell below $76,000, but resumed its rally over the weekend.

Following bitcoin's lead, shares of companies tied to the crypto sector also rose. MicroStrategy's stock gained about 7% in premarket trading, Coinbase rose 4.8%, and Robinhood climbed 3.7%.

Bitcoin mining company shares also advanced. Mara Holdings and Riot Platforms both gained nearly 5%, Hut 8 rose 4.8%, and CleanSpark added 4.3%.

The market's current momentum was preceded by the SEC's decision last Thursday, which granted eligible trading platforms a five-year temporary exemption to trade tokenized U.S. stocks on the blockchain, subject to certain conditions.

According to the SEC, the so-called "Innovation Exemption" aims to support innovation in financial markets while maintaining standards for investor protection and market integrity. Tokenized stocks must carry rights similar to those of their corresponding traditional shares, including the ability to receive dividends and vote.

The decision has strengthened expectations that traditional financial markets and blockchain infrastructure will become more closely integrated in the future. This expectation provided additional support for crypto-sector stocks and several major digital assets. Crypto-related shares also rose significantly on Friday following the announcement of the SEC's decision.