Bitcoin Surges Past $85,000 as SEC Greenlights Tokenized Stock Trading

Bitcoin surged past the $85,000 mark on Monday, extending a recent rally fueled by a landmark U.S. regulatory decision allowing for the on-chain trading of tokenized stocks. The move, coupled with easing inflation concerns, bolstered investor sentiment across the broader digital asset market.

As of 9:35 AM ET, Bitcoin was trading at $85,138.9, a gain of 5.7% on the day and up approximately 5% over the past week, according to Investing.com data. The rally marks a significant rebound after the cryptocurrency briefly dipped below $76,000 following the Federal Reserve's most recent interest rate hike.

SEC Rule Boosts Crypto Sentiment

The primary catalyst for the market's optimism was an announcement from the U.S. Securities and Exchange Commission (SEC) last Thursday. The regulator granted a five-year temporary exemption for qualified platforms to trade tokenized versions of U.S. stocks on blockchain-based systems, provided they meet specific conditions.

This decision is seen by investors as a major step toward integrating traditional financial assets with blockchain technology. The news triggered a sharp rally in crypto-related equities on Friday, with shares of Coinbase (NASDAQ:COIN) climbing 12%, MicroStrategy (NASDAQ:MSTR) jumping 16%, and Robinhood (NASDAQ:HOOD) rising 9%.

Broader Market Factors and Altcoin Rally

Improving macroeconomic conditions also contributed to the positive mood. A decline in oil prices, with Brent crude falling about 2% to below $102 a barrel, helped alleviate some concerns about inflation and rising energy costs. Overall risk appetite improved, reflected in gains across Asian stock markets and in U.S. futures.

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Most alternative cryptocurrencies, or altcoins, followed Bitcoin's upward trend:

• Ethereum (ETH), the second-largest cryptocurrency, rose 6.1% to $2,738.92.
• XRP gained 7.6%, trading at $1.482.
• Other major tokens including Solana (SOL), Cardano (ADA), and BNB posted gains of 8.6%, 9.4%, and 5%, respectively.

MicroStrategy Continues Accumulation

Adding to the market's bullish tone, corporate Bitcoin holder MicroStrategy disclosed another significant purchase. In an 8-K filing with the SEC, the company revealed it acquired an additional 950 bitcoins between September 14 and September 20.

The purchases were made at an average price of $79,670 per coin, for a total investment of approximately $75.7 million. According to Executive Chairman Michael Saylor, the acquisition brings MicroStrategy's total holdings to 846,000 BTC, with an average purchase price of $75,416 per coin.