ABUJA — Bitcoin recorded another sharp rise on Friday, climbing 6.9 percent to $77,675.94 as renewed optimism over cryptocurrency legislation in the United States and a surprise move by the US Treasury to increase its bond buybacks boosted demand for riskier assets.
The world’s largest cryptocurrency by market value reached its highest level since May during Friday’s trading session. Its latest gain also pushed its overall increase to more than 20 percent since Wednesday, marking a significant rebound in the digital asset market.
Friday’s rally was the third consecutive trading day in which Bitcoin gained more than five percent, highlighting the strength of the recent buying momentum.
The latest surge followed comments by US President Donald Trump on Wednesday urging lawmakers to move ahead with the Clarity Act, legislation designed to establish clearer rules for the cryptocurrency industry and encourage wider adoption of digital assets.
The bill has faced delays in the US Senate, but Trump’s call for lawmakers to advance the legislation renewed investor optimism that the United States could make further progress towards establishing a clearer regulatory framework for cryptocurrencies.
Bitcoin also received support from developments in the US Treasury market. The Treasury announced plans to double its purchases of outstanding US government bonds, a move aimed at helping to manage borrowing conditions and reduce pressure on longer-term interest rates.
The decision came after the yield on the 30-year US Treasury bond climbed to levels not seen since 2007, raising concerns about higher long-term borrowing costs.
A potential decline in long-term bond yields can make traditionally safer fixed-income investments relatively less attractive to investors. This can encourage a shift towards assets considered riskier but potentially capable of delivering higher returns, including cryptocurrencies.
Market analysts said the combination of improving sentiment around US cryptocurrency policy and changing conditions in the Treasury market had helped strengthen Bitcoin’s rally.
“Renewed optimism around crypto progress in Washington helped light a fire under Bitcoin,” said Bret Kenwell, a US investment analyst at eToro.
The latest gains reinforce Bitcoin’s strong recovery in the past several sessions, as investors continue to monitor developments in US monetary policy, Treasury markets and efforts by lawmakers to establish clearer regulations for the cryptocurrency sector.
