Bitcoin prices saw a significant increase on October 20, breaking above the US$110,000 mark and restoring optimism in the cryptocurrency market. This resurgence has positively impacted cryptocurrency-related stocks, leading to renewed confidence that recent market volatility may be temporary. Market analyst Linh Tran from online broker XS.com noted that Bitcoin has entered a phase of re-accumulation following a brief adjustment period. He emphasized that market sentiment has stabilized and institutional demand remains robust.
The rise in Bitcoin prices also propelled shares of cryptocurrency-focused firms. Strategy’s stock climbed over 2%, following a recent filing with the U.S. Securities and Exchange Commission (SEC) that revealed the company had acquired 168 additional Bitcoins between October 13 and 19, with an average purchase price of US$112,051. The company now holds a total of 640,418 Bitcoins, valued at approximately US$47.4 billion.
Several trading platforms, including Robinhood and Coinbase, experienced notable stock gains, rising by nearly 4.5% and 2.5%, respectively. Additionally, Circle, a prominent stablecoin issuer, saw its stock increase by 3.5%. Cryptocurrency mining companies also demonstrated strong performance, with many of them diversifying into high-performance computing (HPC) for artificial intelligence applications. MARA Holdings, a Bitcoin mining company, surged nearly 6%, while Bit Digital experienced a significant jump of 15%, with Cipher Mining also rising by 6%.
In a significant regulatory development, Japan’s financial watchdog is reportedly contemplating policy revisions that would enable domestic banks to hold Bitcoin and other cryptocurrencies. Currently, Japanese banks are restricted from including crypto assets in their investment portfolios. If approved, this move could pave the way for large, regulated funds to participate in the crypto market, enhancing the mainstream acceptance of Bitcoin and other digital assets.
Such regulatory changes in Japan, a mature and advanced economy, may influence other countries to reconsider their own cryptocurrency regulations. Enhanced participation from banks could lead to improved custodial services, better integration of trading platforms, and a boost in market liquidity—ultimately fostering greater confidence among both retail and institutional investors.
As Bitcoin surged, other digital currencies also saw gains—most notably Ether, which rebounded to $4,000 after dipping to $3,700 the previous week. Robert Mitchnick, the Head of Digital Assets at BlackRock, explained that recent fluctuations in Bitcoin and other cryptocurrencies were largely driven by leveraged speculative trading on offshore futures exchanges, which, while only accounting for a small percentage of total Bitcoin holdings, represented a significant portion of daily trading volume. He suggested that as the market matures, long-term investment strategies will likely prevail over short-term volatility concerns.
