Bitcoin Surges Above $77,000 Amid US Policy Optimism

On Friday, Bitcoin experienced a significant surge, climbing 6.9% to reach $77,675.94, its highest level since May. This increase is part of a broader trend, with Bitcoin up over 20% since Wednesday and marking the third consecutive day of gains exceeding five percent.

The rally was fueled by renewed optimism regarding US cryptocurrency legislation, particularly after US President Donald Trump urged lawmakers to pass the Clarity Act, a bill aimed at promoting cryptocurrency use that has been stalled in the Senate. Additionally, the US Treasury's unexpected decision to double its sovereign bond buybacks contributed to a favorable environment for riskier assets, as it aims to lower long-term borrowing costs.

The intervention followed a surge in the 30-year Treasury yield, which reached levels not seen since 2007. Bret Kenwell, a US investment analyst at eToro, noted that the combination of falling Treasury yields and short liquidations further propelled Bitcoin's rally.