Market Analyst Owen Lau Says New Crypto Rally Has Legs

An unexpected upswing in the cryptocurrency market has captured investor attention, with Clear Street analyst Owen Lau asserting that the latest rally “has legs.” As bitcoin climbs and regulatory momentum builds, Lau’s analysis suggests a potential turning point in the crypto cycle. This article explores the drivers behind the rally, its implications for stakeholders, and what lies ahead.

The recent surge in cryptocurrency prices, particularly bitcoin, has sparked renewed optimism. In a note dated March 4, 2026, Owen Lau highlighted that the approximately 44% drawdown between October 10, 2025, and February 28, 2026, may mark the end of the latest crypto winter. He emphasized improving sentiment, regulatory progress, and institutional integration as key catalysts. “We believe this run has legs,” Lau wrote, underscoring his conviction that the rally could be sustainable.

A Turning Point in Crypto Markets

Bitcoin has risen sharply—up 8% in the past 24 hours and roughly 11% over the past week—pushing it above $73,000 and nearing the critical resistance level around $75,000.

Lau attributes this momentum to several converging factors:

• Regulatory Momentum: U.S. President Donald Trump’s renewed focus on the stalled CLARITY Act has increased the likelihood of its passage by summer. This legislation could provide much-needed clarity and legitimacy to the digital asset sector.
• Institutional Integration: Kraken’s banking subsidiary recently gained a Federal Reserve master account, granting direct access to the central bank’s payment system. Lau sees this as a structural advancement toward integrating crypto-native firms into mainstream finance.
• Institutional Adoption: Morgan Stanley amended its spot bitcoin ETF filing to include Coinbase Custody alongside Bank of New York Mellon as co-custodians. This move underscores growing institutional trust in crypto infrastructure.

Lau’s coverage extends to major crypto firms such as Coinbase, Circle, and Bullish. He currently maintains a Buy rating on Coinbase and Bullish, and a Hold rating on Circle.

Weighing the Risks: Is It a Bull Trap?

Despite the bullish outlook, some analysts caution that the rally could be a bull trap—a temporary spike that reverses sharply. Heavy overhead supply and crowded derivatives positioning could trigger selling pressure as bitcoin approaches the $72,000–$76,000 range.

Lau, however, remains confident that the convergence of regulatory clarity, institutional integration, and improving sentiment marks a genuine inflection point for the industry. “The industry may just hit an inflection point,” he wrote, reinforcing his belief that the rally is sustainable.

Implications for Stakeholders

Retail Investors

For retail participants, the rally presents both opportunity and caution. The surge in bitcoin may attract new entrants, but the risk of a bull trap means investors should remain vigilant and consider risk management strategies.

Institutional Players

Institutional investors stand to benefit from the growing infrastructure and regulatory clarity. The inclusion of Coinbase Custody in ETF filings and Kraken’s Fed account signal increasing legitimacy and ease of access for institutional capital.

Crypto Firms

Companies like Coinbase, Circle, and Bullish may see renewed investor interest and valuation support. Lau’s Buy ratings on Coinbase and Bullish suggest confidence in their ability to capitalize on the rally.

Regulators and Policymakers

The potential passage of the CLARITY Act could reshape the regulatory landscape, offering clearer guidelines for digital assets. This may encourage further institutional participation and innovation in the sector.

What Lies Ahead?

If the rally continues, bitcoin could break through the $75,000 resistance and potentially reach new highs. Sustained momentum may also drive broader market gains across altcoins and crypto equities.

However, if the rally falters, the market could face a sharp correction. Overhead supply and derivatives positioning may amplify downside risk, especially if sentiment shifts.

Lau’s analysis suggests that the crypto industry may be at a pivotal moment. Should regulatory clarity and institutional integration continue to advance, the rally could indeed have legs.

Conclusion

Clear Street analyst Owen Lau’s assertion that the new crypto rally “has legs” reflects a cautiously optimistic outlook. With bitcoin rising, regulatory momentum building, and institutional infrastructure strengthening, the market may be entering a new phase. While risks remain—particularly the possibility of a bull trap—the convergence of these factors suggests a meaningful shift. Investors, institutions, and policymakers alike will be watching closely as the rally unfolds.

Frequently Asked Questions

What does Owen Lau mean by “the rally has legs”?

He means the recent crypto rally appears sustainable, supported by improving sentiment, regulatory developments, and institutional integration.

What is the CLARITY Act and why does it matter?

The CLARITY Act is proposed U.S. legislation aimed at providing regulatory clarity for digital assets. Its passage could legitimize the industry and encourage broader adoption.

How high is bitcoin trading now?

Bitcoin is trading just above $73,000, having risen approximately 8% in the past 24 hours and 11% over the past week.

What are the risks to this rally?

Analysts warn of a potential bull trap, citing heavy overhead supply and crowded derivatives positioning that could trigger a reversal.

Which crypto firms does Owen Lau cover?

Lau covers Coinbase, Circle, and Bullish. He currently has Buy ratings on Coinbase and Bullish, and a Hold rating on Circle.

What institutional developments are supporting the rally?

Key developments include Kraken’s Fed master account and Morgan Stanley’s ETF filing naming Coinbase Custody as a co-custodian, signaling deeper institutional integration.