Bitcoin Surges Toward $78,000 on Trump's Push for Crypto Regulation

Bitcoin surged on Friday, extending its gains to the highest levels since late May after former U.S. President Donald Trump urged policymakers to pass clear cryptocurrency regulations. The rally was further supported by a broader increase in market risk appetite after the U.S. Treasury announced it would double the size of its bond buybacks.

As of 9:51 AM ET, Bitcoin (BTC) was up 8.4% to $77,690.6, having reached an intraday high of $79,600.6, according to Investing.com data. The leading cryptocurrency is now on track for a weekly gain of approximately 23%, which would mark its strongest weekly performance since February 2024.

Catalysts for the Breakout

The primary driver for the market's bullish sentiment was a statement from Trump earlier in the week, in which he called on Congress to pass the "Clarity Act," a legislative proposal aimed at establishing a comprehensive regulatory framework for the U.S. digital asset industry. The bill's progress in Congress has previously stalled amid disagreements over how to classify crypto assets.

Adding to the momentum, the U.S. Treasury's plan to increase its bond buybacks helped suppress yields and encourage investment in higher-risk assets, including cryptocurrencies. "This rally is real and I think it's a combination of two narratives," said Ran Hammer, Chief Business Officer at Orbs, a blockchain infrastructure company. Hammer noted that falling yields provided upward momentum, while Trump's push for legislation triggered a liquidation of $3 billion in short positions. "Institutional investors are not waiting for higher prices, they are waiting for clear rules," he added.

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Broader Market Reaction

The rally lifted the entire digital asset ecosystem, from crypto-related equities to alternative coins.

• Crypto Stocks: Major industry players saw significant gains. Coinbase (NASDAQ:COIN) rose 7.9%, while the largest corporate Bitcoin holder, MicroStrategy (NASDAQ:MSTR), climbed 7.8%. Mining firms also surged, with Riot Platforms (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA) jumping 8.3% and 15.5%, respectively.
• ETF Inflows: U.S.-listed spot Bitcoin ETFs recorded approximately $1 billion in net inflows this week, their best weekly performance since January, according to data from SoSoValue.
• Altcoins: Other major cryptocurrencies followed Bitcoin's lead. Ethereum (ETH) gained 5.5% to trade at $2,400.69, while XRP saw a notable 15.7% increase to $1.4100. Solana (SOL) and Cardano (ADA) also posted strong gains of 5.3% and 10.8%, respectively.