Bitcoin jumped 8% to $73,777 Wednesday as crypto stocks rallied alongside a broader recovery in risky assets. The cryptocurrency's rebound came after a steep 50% decline from its October peak of $125,000, driven by market fears over energy disruptions from Middle East tensions. Alex Thorn of Galaxy Digital described the move as a relief rally, noting bitcoin had been more severely battered than equities.

Crypto equities outperformed across the board, with Coinbase shares surging 14% and Gemini climbing 30%. Other major players like Robinhood, Bullish, and Galaxy Digital posted double-digit gains. The rally coincided with renewed political pressure from President Trump, who accused banks of undermining the Genius Act on stablecoin regulation through his Truth Social platform.

Trump's intervention highlighted the intensifying battle between crypto firms and traditional lenders over stablecoin interest payments. Banks warn that allowing exchanges to pay interest on stablecoins could trigger deposit flight and destabilize the financial system, while crypto companies argue such restrictions are anti-competitive. The dispute has escalated to Capitol Hill, with a planned Senate review canceled after Coinbase withdrew support, demonstrating the industry's growing Washington influence.