Bitcoin surged above the $77,000 mark on Friday as growing optimism over cryptocurrency legislation in the United States and a surprise move by the US Treasury boosted investor confidence. The world’s largest cryptocurrency by market value climbed 6.9 per cent to $77,675.94 after touching its highest level since May. The latest rally also pushed Bitcoin’s gains above 20 per cent since Wednesday, marking its third consecutive day of gains exceeding five per cent.
The sharp rise came as investors responded positively to renewed hopes for clearer cryptocurrency regulations in the United States. US President Donald Trump had on Wednesday urged lawmakers to pass the Clarity Act, a proposed legislation aimed at encouraging cryptocurrency adoption and establishing clearer rules for the industry. The bill, however, has stalled in the Senate, leaving investors closely watching developments in Washington.
Bitcoin’s rally was further supported by the US Treasury’s decision to double its purchases of government bonds. The move is aimed at reducing long-term borrowing costs and came after the yield on 30-year US Treasury bonds climbed to levels last seen in 2007, shortly before the global financial crisis. The intervention helped ease concerns in financial markets and encouraged investors to take on more risk.
As Treasury yields fell, demand increased for assets considered riskier, including cryptocurrencies. Analysts said the combination of improving sentiment around US crypto policy, falling bond yields and the forced closure of short positions helped accelerate Bitcoin’s climb. “Renewed optimism around crypto progress in Washington helped light a fire under Bitcoin,” said Bret Kenwell, a US investment analyst at eToro, adding that falling Treasury yields and short liquidations provided further fuel for the rally.
The latest surge highlights how closely Bitcoin continues to respond to developments in US financial and regulatory policy. With investors anticipating clearer rules for the cryptocurrency sector and watching moves by the Treasury and broader financial markets, Bitcoin’s rapid rebound has renewed attention on the digital asset. Whether the momentum can be sustained, however, will depend on further policy developments and shifts in investor risk appetite.
source: punch
