Crypto Stocks Surge 12% as GENIUS Act Boosts Market Sentiment

On Monday, U.S. stock market opened with the Dow Jones Industrial Average rising by 0.06%, the S&P 500 Index increasing by 0.16%, and the Nasdaq Composite Index gaining 0.31%. Cryptocurrency-related stocks experienced a significant surge at the opening, with Galaxy Digital (GLXY.US) rising over 12%, Bit Origin (BTOG.US) and BTCS Inc (BTCS.US) both up over 9%, and SharpLink Gaming (SBET.US) and Trump Media & Technology Group both increasing over 7%.

The surge in crypto concept stocks followed the signing of the GENIUS Act by President Donald Trump late on Friday. This legislation, which regulates stablecoins, has instilled optimism among investors, leading to substantial gains in shares of companies associated with the cryptocurrency market. Coinbase, a prominent cryptocurrency exchange, saw its shares rise by 1.7% in premarket trading. MicroStrategy, a business intelligence company with significant Bitcoin holdings, added 1.5% to its share price. The positive market sentiment extended to other crypto-linked stocks, with Circle Internet Group's stock surging from $31 to nearly $200. This surge was driven by the market capitalization of USDC, a stablecoin issued by Circle, which stands at $61 billion, as well as the regulatory tailwinds provided by the GENIUS Act.

The broader cryptocurrency market also experienced a boost, with ether prices advancing. This increase in ether prices contributed to the overall positive sentiment in the crypto-linked stock market. The US Treasury has predicted that T-bills held by stablecoin issuers, excluding interest-bearing stablecoins, will grow to approximately $1 trillion by 2028. This prediction, along with the regulatory clarity provided by the GENIUS Act, has further fueled investor confidence in the crypto market.

The merger between Dynamix and The Ether Reserve also played a role in the surge of crypto-linked stocks. Shares of Dynamix traded 30% higher, reaching $13.35. The deal is backed by a group of crypto investors, including exchanges Kraken and Blockchain.com, which contributed more than $100 million in funding. This merger is seen as a strategic move that could further integrate cryptocurrency into traditional financial markets.

The positive sentiment in the crypto market is not without risks, however. Investors are advised to be cautious as they navigate the volatile nature of the cryptocurrency market. The surge in crypto-linked stocks is a testament to the growing interest and investment in digital assets, but it also highlights the need for regulatory oversight and investor education.

In summary, the signing of the GENIUS Act has provided a significant boost to the crypto market, leading to a surge in crypto-linked stocks. The regulatory clarity and the predicted growth of T-bills held by stablecoin issuers have contributed to the positive sentiment among investors. However, investors are advised to remain cautious as they navigate the volatile nature of the cryptocurrency market.