As of early Friday, Bitcoin's price reached $75,343.01, up from $62,836.88 at the beginning of the week, marking a notable increase. This rally is attributed to a decline in Treasury yields following a significant intervention by the Treasury in the bond market, which alleviated pressure on risk assets and encouraged investment in cryptocurrencies.
Additionally, a massive short squeeze liquidated around $2.7 billion in crypto short positions, further fueling the price surge. Crypto-related stocks also saw gains, with Coinbase and Circle rising by 7.5% and 6.45%, respectively. The ProShares Bitcoin strategy ETF increased by 5.5% in premarket trading.
Max Stuedlein from Sygnum APAC noted that the Treasury's decision to double its buybacks of long-dated government debt is aimed at addressing long-term yield concerns, which have been exacerbated by rising borrowing costs.
Investor sentiment improved further due to efforts from the White House and crypto industry leaders to advance the Clarity Act, a legislative proposal seen as crucial for revitalizing the crypto market. However, the likelihood of the bill passing remains uncertain.
Despite the recent gains, Bitcoin's price is still significantly below its 2026 high of $94,820 and its all-time high of $126,198 from October 6 last year