Bitcoin recorded another sharp rise on Friday as investors responded positively to renewed hopes for cryptocurrency legislation in the United States and a surprise move by the US Treasury to increase its bond buybacks.
The world’s largest cryptocurrency by market value rose 6.9 per cent to $77,675.94, reaching its highest level since May. The latest gain pushed Bitcoin’s increase to more than 20 per cent since Wednesday.
Friday marked the third consecutive day in which Bitcoin gained more than 5 per cent, extending a strong rally across the cryptocurrency market.
Trump Backs Crypto Legislation
The latest surge followed US President Donald Trump’s call on Wednesday for lawmakers to pass the Clarity Act, proposed legislation aimed at establishing clearer rules for the cryptocurrency industry.
The bill has faced delays in the US Senate, but Trump’s support has renewed optimism among investors that lawmakers could make progress on cryptocurrency regulation.
Market participants have increasingly viewed clearer regulation as a potential catalyst for wider institutional and mainstream adoption of digital assets.
Treasury Move Boosts Risk Appetite
Bitcoin also benefited from the US Treasury’s decision to increase its purchases of government bonds.
The Treasury’s move is aimed at helping reduce longer-term borrowing costs after the yield on 30-year US Treasury bonds climbed to levels not seen since 2007.
Lower bond yields can make traditional fixed-income investments less attractive relative to higher-risk assets, potentially encouraging investors to move more capital into assets such as cryptocurrencies.
Analysts See Multiple Drivers Behind Rally
Market analysts said the Bitcoin rally was being supported by several factors, including expectations of progress on US crypto legislation, falling Treasury yields and the forced closing of bearish positions.
“Renewed optimism around crypto progress in Washington helped light a fire under Bitcoin,” said Bret Kenwell, US investment analyst at eToro.
He added that falling Treasury yields and short-position liquidations had provided additional momentum for the rally.
Bitcoin’s latest surge highlights how closely cryptocurrency markets remain tied to developments in US financial policy, interest rates and regulatory decisions.
