Bitcoin is reclaiming its status as the favored asset among high-risk speculators, and this sharp rebound has quickly impacted the stock prices of public companies whose core strategy revolves around holding the cryptocurrency. Following a market crash on Thursday, Bitcoin staged its largest single-day rally in nearly three years on Friday, surging approximately 13% at one point from an overnight low near $60,000 to above $70,000, nearly erasing all losses from the previous session. The prior sell-off had pushed Bitcoin down about 46% from its all-time high of over $126,000 in October of last year. Such extreme volatility has reignited interest among speculative traders for high-risk assets. The improvement in market sentiment is also reflected in related concept stocks. Shares of Strategy (MSTR.US) soared more than 26% on Friday, recouping all losses from the previous trading day. Although Strategy's stock initially declined in after-hours trading following its Thursday earnings report, it quickly recovered as Bitcoin's price stabilized and rebounded. Analyst Lance Vitanza from TD Cowen noted in a recent report that even if this is not the end of the cryptocurrency sell-off, Strategy "retains the capacity to withstand a further significant decline in Bitcoin's price." He assigned the stock a "Buy" rating with a price target of $440, implying substantial upside potential from Thursday's closing price of $106.99. Vitanza stated that Strategy's current cash reserves of approximately $2.25 billion are sufficient to cover fixed costs of around $900 million, providing a runway of close to 17 months, and can also fund a potential $1 billion convertible bond redemption due in September 2027. "This holds true whether Bitcoin is at $100,000 or $1,000," he emphasized. From a market structure perspective, the recent rebound in the crypto market is seen more as a sentiment-driven recovery. Noelle Acheson, author of the "Crypto is Macro Now" newsletter, suggested this rally resembles a technical bounce following the exhaustion of selling momentum. Damien Loh, Chief Investment Officer at Ericsenz Capital, also believes that Bitcoin has shown clear support around the $60,000 level, but cautioned that a rapid return to previous highs is unlikely in the short term given the still-cautious overall risk appetite. However, TD Cowen maintains a relatively optimistic outlook for the medium term. Vitanza indicated that the firm's base case scenario is that this recent plunge will ultimately pave the way for Bitcoin to reach new highs, potentially in the third quarter. If Bitcoin manages to return to near its October highs later this year, both cryptocurrency investors and Strategy shareholders are likely to experience another period of extreme volatility.