Bitcoin and ether climbed sharply after U.S. President Donald Trump called on Congress to move forward with the Crypto Clarity Act, a proposed law expected to provide greater regulatory clarity for the digital asset industry.
Bitcoin was recently trading about 5.2% higher at $71,880, while ether gained more than 9% to $2,288.91. Despite the latest rebound, bitcoin remains below its 2026 peak of $94,820, reached in mid-January, as well as its record high of $126,198, set on Oct. 6 last year.
Trump also raised the possibility of regulatory action involving Hyperliquid, a decentralized exchange that has attracted significant interest from traders, particularly in perpetual futures markets. The Hyperliquid token jumped roughly 25% over the previous 24 hours, according to CoinGecko data.
Treasury Moves Add to Crypto Rally
Falling U.S. Treasury yields provided another boost to risk assets. Trading volume in the iShares Bitcoin Trust ETF (IBIT) had already exceeded 4.5 times its 30-day average before news surrounding Hyperliquid emerged.
Bitcoin’s volatility also increased, with Volmex Labs’ BVIV Index climbing above 40 after reaching a year-to-date low of 35.5 on Friday.
The move followed the U.S. Treasury’s announcement that it would significantly increase buybacks of 20-year and 30-year government bonds. The decision pushed longer-term Treasury yields lower, potentially making higher-risk assets such as bitcoin more attractive to investors.
Charlie Hayward, APAC regional director at RootstockCollective, said the decline in yields was supportive for risk assets such as cryptocurrencies.
Max Stuedlein, head of partnerships at Sygnum APAC, described bitcoin’s latest advance as the result of both macroeconomic and policy developments.
He said the Treasury’s decision to double its purchases of longer-dated government debt was designed to address concerns surrounding long-term borrowing costs, U.S. debt levels and the potential crowding-out effect from heavy debt issuance by large technology companies.
Analysts See Potential for Bitcoin to Reach $100,000
Geoffrey Kendrick, global head of digital assets research at Standard Chartered, said the Treasury’s increased support for the longer end of the bond market was particularly favorable for bitcoin.
Kendrick said investors could position themselves for bitcoin to reach $100,000 by the end of 2026, reflecting his bullish outlook on the cryptocurrency.
The sharp moves across the crypto market have also triggered significant liquidations. Thomas Lee, co-founder and head of research at Fundstrat, said the recent rally contributed to the second-largest short liquidation event in crypto history.
The strong price action has also pushed ether to a three-month high. CoinGecko data showed ether gaining approximately 19% over the past seven days, reaching around $2,251.
Bitcoin Breaks Out of a Narrow Trading Range
Before the latest rally, bitcoin had spent roughly six weeks trading between support near $62,000 and resistance around $66,000.
David Morrison, senior market analyst at Trade Nation, described the prolonged period of limited volatility as frustrating for cryptocurrency traders. Bitcoin had already fallen by roughly half from its record high reached last October, yet the market remained relatively subdued for much of the period.
The latest combination of renewed political support for crypto legislation, lower Treasury yields and increased market activity has now pushed bitcoin and ether significantly higher, giving traders renewed optimism about the direction of the digital asset market.
