Bitcoin surpassed $70,000 on Thursday, reaching its highest point since June, as Treasury yields experienced a brief decline and President Donald Trump urged Congress to expedite the passage of cryptocurrency-friendly legislation.
The leading cryptocurrency jumped 4.6% to $72,475.25, marking a roughly 12% increase over the preceding two days after trading near $63,000 earlier in the week. Ether also saw gains, rising 3.4% to $2,329.96. Major cryptocurrency firms such as Coinbase, Strategy, and Robinhood experienced stock increases of 8.2%, 6.6%, and 0.4%, respectively.
The rally in the cryptocurrency market occurred as the Treasury Department announced a surprise initiative to increase debt buybacks, leading to lower Treasury yields. Concurrently, Trump encouraged lawmakers to pass "a fair version of the Clarity Act," a bill focused on crypto regulation, before the end of the year.
While Bitcoin's current price is below its all-time high of $126,198 reached in October 2026 and its 2026 peak of $94,820 in mid-January, proponents of the digital asset are optimistic about potential pro-crypto policies under the Trump administration.
Analysts suggest that the current market movement is partly a relief rally and a short squeeze, with approximately $2.7 billion in crypto short positions liquidated. However, broader macroeconomic factors, such as potential interest rate hikes by the Federal Reserve or sell-offs in tech stocks, could impact Bitcoin's trajectory.
The Treasury Department's decision on Wednesday to "at least double" its debt buybacks was aimed at counteracting rising Treasury yields that have increased borrowing costs. Treasury Secretary Scott Bessent indicated that these accelerated buybacks could exceed the initially announced $4 billion.
During a White House event on Wednesday attended by executives from major cryptocurrency companies, Trump emphasized the need for Congress to pass the Clarity Act, which has faced delays in the Senate for approximately a year. He stated that the legislation would enhance the United States' standing globally and foster innovation.
The Clarity Act, which aims to establish clear regulatory rules for digital assets, was approved by the House last summer but has been stalled in the Senate. Discussions in the Senate have involved Democratic proposals for stricter restrictions on public officials' cryptocurrency dealings, while Republicans have argued these changes are too restrictive.
The Senate's upcoming procedural vote on September 15 presents a critical juncture for the bill. Failure to advance the Clarity Act could significantly impact its prospects for passage this year, a factor of potential importance for Republicans leading up to the midterm elections.
Some observers believe the current administration is motivated to demonstrate its ability to lower borrowing costs and stimulate financial markets, including emerging sectors like cryptocurrency, in the period preceding the November elections. The potential for Democrats to gain seats could also lead to increased scrutiny of the administration's crypto regulations, incentivizing a push for legislative action now.