Bitcoin extended its advance on Friday, climbing as much as 8% to $77,400, putting the cryptocurrency on track for its largest weekly gain since March 2024.
The surge capped a week in which the digital asset rose more than 20%, driven by a sharp rebound in risk appetite after U.S. Treasury Secretary Scott Bessent announced plans to at least double the volume of long-dated bond buybacks. The move pushed long-term yields lower and prompted the liquidation of nearly $2 billion in short positions across Bitcoin perpetual futures markets, according to data from Coinglass.
The Treasury’s decision reinforced a broader shift toward risk assets, analysts said, though it did not alter Bitcoin’s long-term outlook or reduce its volatility. ‘The doubling of long-dated Treasury buybacks reduced long-term yields and lifted risk sentiment across markets,’ said Rachael Lucas, an analyst at BTC Markets. ‘Nothing has changed Bitcoin’s long-term prospects, nor has anything changed its volatility.’
Political signals also supported the advance. Former U.S. President Donald Trump met with crypto industry leaders, including representatives from Coinbase and Payward, at the Bitcoin Asia Conference in Hong Kong. Trump urged the Senate to pass the Clarity Act, a bill aimed at clarifying the regulatory framework for digital assets, which had stalled over disputes about ethical provisions. The legislation had not reached a vote before the Senate’s August recess.
Institutional flows reinforced the rally. U.S.-listed Bitcoin spot ETFs recorded inflows exceeding $1 billion from Monday to Wednesday, the largest weekly total since January. Analysts at CryptoQuant reported that large Bitcoin holders, or ‘whales,’ accumulated roughly $2.75 billion in Bitcoin over the past 60 days.
Bitcoin remains well below its record high above $126,000 set last October, a peak that preceded a sharp selloff that drove the price to as low as $58,642 by late June. The latest advance follows a period of elevated volatility and underscores the sensitivity of crypto markets to macroeconomic policy shifts and regulatory developments.
