Bitcoin on Thursday surged above $70,000 – its highest level since June – as Treasury yields briefly plummeted and President Trump urged Congress to speed up passage of crypto-friendly legislation.
Bitcoin jumped 4.6% to $72,475.25 – a roughly 12% gain over the past two days after the digital asset was trading near $63,000 earlier this week.
Ether rose 3.4% to $2,329.96. Cryptocurrency firms like Coinbase, Strategy and Robinhood also saw gains of 8.2%, 6.6% and 0.4%, respectively.
The crypto rally came as the Treasury Department announced a surprise move to ramp up debt buybacks, sending Treasury yields lower, while Trump pushed lawmakers to pass “a fair version of the Clarity Act,” a crypto regulation bill, before the end of the year.
Bitcoin is still far off from its 2026 high of $94,820 in mid-January and all-time high of $126,198 last October, as crypto enthusiasts hoped the Trump administration would enact crypto-friendly policies.
Nic Puckrin, founder of Coin Bureau, said he expects Bitcoin to continue climbing and eventually rise back above $100,000 – but not this year.
“What we’re seeing right now is a relief rally and a short squeeze…but the broader macro backdrop still looks pretty hawkish,” Puckrin told The Post, nodding to the odds that the Fed hikes interest rates or investors sell off tech stocks – both of which could hit Bitcoin.
“We also have the midterms coming up, and if it does end up being a clean sweep for the Democrats, crypto assets won’t like that. I also don’t think the Clarity Act will pass this year, despite all the promises, so that disappointment will likely hit the Bitcoin price too,” he said.
On Wednesday, Treasury yields nosedived after the Treasury Department said it would “at least double” its debt buybacks in an effort to counter soaring Treasury yields, which have pushed borrowing costs higher for consumers this summer.
It triggered a massive push into crypto and a short squeeze that saw $2.7 billion in crypto short positions liquidated, according to data from CoinGlass.
Treasury Secretary Scott Bessent told CNBC Thursday that the accelerated buybacks could surpass the announced $4 billion mark.
By Thursday, Treasury yields had largely reversed their declines. The 30-year bond was trading at roughly 5.249%.
Meanwhile, during a surprise White House event Wednesday including the CEOs of Coinbase, Kraken, Robinhood, Ripple and ChainLink, Trump urged Congress to pass the Clarity Act, which has been held up in the Senate for roughly a year.
“We need Congress to take the next step by passing the Clarity Act – a fair version of the Clarity Act,” the president said Wednesday. “It’s a very, very powerful structured legislation which will keep us ahead of China, keep us ahead of everyone else, will open the door to the next wave of innovations and innovators.”
The Commodity Futures Trading Commission – the regulatory body for cryptocurrency – is scheduled to host an inaugural Innovation Advisory Committee meeting on Thursday.
Crypto buffs have been pushing for passage of the Clarity Act, hopeful it could establish clear regulatory rules on the digital assets and help them return to roaring growth after a long crypto winter.
Last summer, the House approved the legislation, but it’s been stalled in the Senate, where Democrats are pushing for more stringent restrictions that will prevent Trump and other public officials from profiting off cryptocurrency. GOPers have argued that proposed changes to the bill are too restrictive.
In August, the Senate adjourned for its summer recess without taking up the Clarity Act.
Its first procedural vote on Sept. 15 is fast approaching, and if the Senate again fails to pass through the bill, it could effectively kill the act’s chances of advancing this year – a key concern for Republicans ahead of the midterm elections.
Lacie Zhang, research analyst at Bitget Wallet, said the Trump administration is eager to show that it can lower borrowing costs and bolster financial markets – particularly emerging industries like crypto – ahead of the November elections.
“The legislative window could also narrow if Democrats gain seats and subject the administration’s crypto rules to greater scrutiny,” Zhang wrote in a note Thursday.
“This gives both the White House and the crypto industry a strong incentive to push for legislation now and make the regulatory changes more difficult for a future Congress or administration to reverse.”