The cryptocurrency Bitcoin, the world's largest by market capitalization, showed significant growth, rising by 6.95% to $77,675.94. This level is the highest since May, and the price increased by over 20% since Wednesday.
On Friday, Bitcoin sharply increased in price due to optimism regarding US cryptocurrency legislation, as well as an unexpected decision by the US Treasury Department to increase the buyback of its own bonds, which stimulated investors to move into riskier assets.
Friday marked the third consecutive day that Bitcoin had shown growth of more than 5%. This sharp rise occurred after US President Donald Trump called on lawmakers on Wednesday to pass the Clarity Act—a bill aimed at stimulating cryptocurrency usage that has stalled in the Senate.
Furthermore, demand for cryptocurrencies was boosted by actions from the US Treasury Department, which doubled the purchase of sovereign bonds to reduce long-term borrowing costs. This step increased investors' willingness to take risks.
This intervention followed a surge in the yield on 30-year Treasury bonds to levels seen in 2007, just before the global financial crisis. The prospect of lower yields makes safer investments less attractive, contributing to increased demand for riskier assets like cryptocurrencies.
Bret Kenwell, an investment analyst at eToro, noted that 'the renewed optimism regarding progress in crypto asset matters in Washington helped boost Bitcoin.' He also added that 'the decline in Treasury yields and the liquidation of short positions added fuel to the rally.'