US crypto-related stocks surged collectively, with Strategy gaining nearly 12% and Coinbase rising 9%.

As Bitcoin approaches $70,000, crypto-related stocks notched their largest single-day gain since summer on Wednesday, with major players including Strategy (MSTR), Coinbase (COIN), Circle (CRCL), and BitMine (BMNR) rallying sharply. Bitcoin reserve firm Strategy’s stock rose 11.95% to $103.58, surging over 13% at one point during the session. Crypto exchange Coinbase gained 9.05% to $159.47; stablecoin issuer Circle climbed 9.44% to $78.50; and Ethereum reserve firm BitMine jumped 9.68% to $20.05. The rally was primarily driven by Bitcoin’s short-covering squeeze. As Bitcoin pushed toward $70,000, numerous bearish positions were forced to liquidate, leading to nearly $2 billion in crypto market liquidations over the past 24 hours. Additionally, the U.S. Treasury expanded its long-term Treasury repurchase operations, improving market liquidity expectations and spurring broad gains in risk assets. Stocks like Strategy and Coinbase were also boosted by short covering: both firms had previously ranked among Wall Street’s most heavily shorted stocks, and as share prices rebounded rapidly, some short sellers were forced to buy to close positions, further amplifying gains. Strategy currently holds around 840,000 Bitcoin, with its stock price highly correlated to BTC’s value. BitMine, meanwhile, holds approximately 5.82 million ETH, making it one of the publicly listed companies with the closest pure exposure to Ethereum. However, despite the sharp rebound, Strategy, Coinbase, and BitMine are still down year-to-date. The market is now closely watching whether Bitcoin can break through and hold the $70,000 resistance level to determine if this rally marks a trend reversal or a short-term short squeeze.