Bitcoin surged nearly 7 per cent on Friday, extending a sharp three-day rally as investors responded positively to renewed optimism over cryptocurrency legislation in the United States and the US Treasury’s decision to increase its purchases of government bonds.
The world’s largest cryptocurrency by market value climbed 6.9 per cent to $77,675.94, its highest level since May, according to market data. Bitcoin has gained more than 20 per cent since Wednesday, with Friday marking the third consecutive session in which it rose by more than five per cent.
The rally was partly driven by renewed hopes that the United States could establish a clearer regulatory framework for digital assets.
US President Donald Trump on Wednesday urged lawmakers to pass the Clarity Act, a proposed cryptocurrency market-structure bill that has been stalled in the Senate. The legislation seeks to provide clearer rules for digital assets and define how different cryptocurrencies should be regulated.
Market sentiment was further supported by the US Treasury’s decision to at least double its buyback operations for longer-term government bonds.
The Treasury move came after a sharp sell-off in the bond market pushed long-term yields to their highest levels in years. The 30-year Treasury yield had climbed to levels last seen in 2007, increasing concerns about borrowing costs and market stability.
The expansion of the buyback programme helped push Treasury yields lower and encouraged investors to take on more risk, benefiting assets such as Bitcoin and other cryptocurrencies.
Analysts also said the Bitcoin rally was amplified by the liquidation of large positions held by traders betting on further price declines.
“Renewed optimism around crypto progress in Washington helped light a fire under Bitcoin,” said Bret Kenwell, a US investment analyst at eToro.
“Falling Treasury yields and short liquidations added fuel to the rally,” he added.
The rally has extended across the broader cryptocurrency market, with other major digital assets also recording gains. Crypto-related companies have similarly benefited from the improving sentiment surrounding regulation and financial-market conditions.
The surge marks a significant rebound for Bitcoin after a period of weakness and highlights the growing influence of US policy decisions and broader financial-market conditions on cryptocurrency prices.
Investors are now watching developments around the Clarity Act, US Treasury policy and interest-rate expectations for indications of whether Bitcoin can sustain its latest advance.