Bitcoin surged past $73,000 on Wednesday, marking an 8% increase in 24 hours, as analysts suggest the cryptocurrency market may be entering a new bull phase following a months-long downturn. The rally coincides with growing optimism surrounding potential regulatory changes in the United States and increasing integration of digital assets into traditional financial infrastructure.
Clear Street analyst Owen Lau, in a note released Wednesday, indicated that the roughly 44% drawdown experienced between October 10, 2025 and February 28, 2026, may represent the end of the recent crypto winter. “The industry may just hit an inflection point, and we believe this run has legs,” Lau wrote.
A key factor driving the renewed optimism is U.S. President Donald Trump’s recent engagement with the CLARITY Act. Trump’s intervention on Tuesday has raised expectations that the stalled legislation, which aims to provide regulatory clarity for the digital asset industry, could pass Congress by the end of the summer.
Further bolstering the bullish sentiment is the recent approval of Kraken’s banking subsidiary for a Federal Reserve master account. This development grants Kraken direct access to the central bank’s payment system, a move Lau described as a “structural step” toward integrating crypto-native institutions into the broader U.S. Financial system. Clear Street’s Lau noted this integration is crucial for the continued maturation of the crypto market.
Institutional investment in cryptocurrency is also expanding. Morgan Stanley recently amended a filing for a proposed spot bitcoin ETF, naming Coinbase Custody as a co-custodian alongside Bank of New York Mellon, according to reports. This move underscores Coinbase’s central role in the institutional crypto ecosystem.
Geopolitical factors are also contributing to the shift in market sentiment. Ongoing tensions in the Middle East have highlighted the potential of blockchain networks as alternative payment rails during periods of financial disruption, offering a potential workaround to traditional financial systems.
Owen Lau joined Clear Street in September 2025 as Managing Director and Senior Analyst, leading equity research coverage of the Financial Technology sector. Clear Street, a cloud-native financial technology firm, aims to modernize capital markets. Lau previously held a decade of experience in equity research, specializing in financial technology across global capital markets.
