Bitcoin rally lifts crypto stocks before big week in Congress

Meanwhile, the U.S. House of Representatives is preparing to debate three crypto bills starting on Monday, in what's been dubbed "Crypto Week."

The bills are likely to provide the industry the regulatory framework in the U.S. that it has long demanded.

This comes amid growing bets that the industry's strained ties with Washington are beginning to thaw.

It would be a sharp reversal of fortune for a sector that had once threatened to flee offshore, citing a hostile environment and heavy-handed enforcement in the U.S.

One trader put it this way: "Even if final passage stalls, the optics of legislative engagement are bullish."

But some analysts warn the crypto hype may be outpacing reality.

With likely volatility ahead, some analysts have also cautioned investors to pause and weigh their time horizons before jumping in.

Critics including U.S. Senator Elizabeth Warren have argued that the Trump administration is conceding too much to the crypto industry.

She urged Congress to bar public officials, including the president, from issuing, backing or profiting from crypto tokens.

President Donald Trump has faced criticism from political rivals and ethics experts over potential for conflicts of interest regarding his family's crypto ventures.