TLDR
- Strategy stock rose over 3% in Friday premarket trading, reaching $136.60
- The SEC announced a five-year exemption tied to tokenized stock trading, boosting crypto sentiment
- Bitcoin rose 2.3% to $78,112 despite the Clarity Act failing in the Senate and a Fed rate hike
- Coinbase rose 3.1% and Robinhood added 3.5% in premarket trading
- Strategy trades above its 20-day and 50-day SMAs but remains just below its 200-day SMA of $137.13
Strategy stock jumped more than 3% in Friday premarket trading, hitting $136.60, as a wave of positive regulatory news lifted crypto-linked stocks across the board.
The move came after the Securities and Exchange Commission announced a five-year exemption tied to tokenized stock trading. The Commodity Futures Trading Commission also issued a no-action position covering certain passive software providers that work with regulated entities.
Those two regulatory developments combined to improve sentiment toward crypto-linked companies. Strategy, which holds Bitcoin as its primary treasury reserve asset, tends to move in line with broader crypto market sentiment.
Bitcoin itself rose 2.3% to $78,112 over the past 24 hours. The token is up roughly 1.3% since the start of Monday, though it remains about 38% below its record high from last October.
Clarity Act Collapse Did Little Damage
The rally came despite what looked like a tough week for crypto. The Clarity Act, a key crypto regulation bill, failed in the Senate on Tuesday. The following day, the Federal Reserve raised interest rates for the first time in more than three years.
Neither development hit the market as hard as expected. Investors had already largely accepted that the Clarity Act was unlikely to pass this year, so the Senate vote did not come as a shock.
After the bill failed, both the SEC and CFTC confirmed they would continue writing crypto rules with or without new legislation. That helped steady sentiment.
On the rate hike, oil prices have retreated in recent days, which could reduce pressure for further Fed tightening. The market had already been pricing in a tightening cycle, limiting the downside surprise.
Other crypto stocks followed Strategy higher. Coinbase climbed 3.1% in premarket, while Robinhood added 3.5%.
Technical Levels to Watch
From a technical standpoint, Strategy is trading about 5.2% above its 20-day simple moving average of $129.57 and 24.3% above its 50-day SMA of $109.61.
The one level it has not yet cleared is the 200-day SMA, which sits at $137.13. At $136.60, the stock is just below that threshold.
Momentum signals remain mixed. The MACD is below its signal line and the histogram is negative. The 50-day SMA also remains below the 200-day SMA, a pattern some technical traders view as cautious.
Despite the mixed signals, the stock carries a Buy consensus rating. The average analyst price target sits at $232.82, well above current levels.
The regulatory clarity provided by the SEC and CFTC, even without the Clarity Act passing, appears to be what the market needed to push crypto stocks higher heading into the weekend.
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