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Bitcoin reached $71,673.84 on Thursday morning, marking an 11% increase in just two days. This is the highest level since early June, and the market is still processing the developments from Washington.
It all began with a meeting at the White House. Crypto industry leaders were directly received by the Trump administration, igniting a spark. The Clarity Act — stalled in Congress for months — is back in discussions as a real possibility. Trump himself is pushing for its passage, describing it as “very powerful legislation” that would allow the United States to maintain an edge over China. There are no details on what exactly the White House has conceded to industry players, but the effect on the markets is immediate and clear.
Hyperliquid soars by 27%.
Hyperliquid, Strategy, Coinbase: The Entire Sector Rises
Hyperliquid jumps over 27% after Trump announces efforts to integrate the platform into the United States. Such declarations quickly move numbers. Strategy and Coinbase also rise, although the source does not specify the exact percentages for these two. Circle follows suit — the entire sector reacts positively to the idea that clear crypto legislation might finally emerge from Congress.
However, Trump remains a divisive figure here. He is often criticized for his positions in the crypto sector, given his own interests in the field. This raises questions about potential conflicts of interest. His supporters, on the other hand, see his backing as a historic opportunity to secure favorable legislation. Both sides likely have valid points.
And the timing is not coincidental either.
Bonds, Dollar, Debt: The Macro Context Favors Bitcoin
The U.S. Treasury Department announces it will double the amount of its long-term bond buybacks starting September 9 — at least $4 billion per operation, compared to half that before. The direct result: Treasury yields fall. And when yields drop, alternative assets like Bitcoin become mechanically more attractive to investors seeking returns elsewhere.
The dollar follows suit. It loses 0.24% against the euro, falling to $1.1706 per euro. Not a collapse, but enough to push investors to look towards digital assets as a hedge. It’s a classic market reflex — the greenback weakens, Bitcoin benefits.
The Fed minutes released Wednesday did not change this. No signal of additional monetary tightening. Markets took this as an implicit green light. No rate hikes in sight, no reason to flee to cash or short-term bonds.
Then there’s the debt. U.S. national debt has just surpassed $40 trillion. This figure, symbolically, weighs heavily. Some investors see it as another reason to diversify — Bitcoin as a potential refuge in the face of a budgetary situation that isn’t improving. It’s not a new argument, but now it comes with a record figure that gives concrete weight to the concern.
The bond market and the crypto market communicate more than often thought. The Treasury’s decision on buybacks creates downward pressure on long yields, and this is reflected in Bitcoin’s price almost in real-time. Traders arbitraging between asset classes were likely among the first to move.
Hyperliquid at over 27%, Bitcoin at $71,673.84, the dollar at $1.1706 against the euro — all within a 48-hour window.
Hub: Bitcoin: price, news, and analysis
SEC Proposes New Crypto Token Rules as Congress Stalls on Digital Asset Market Clarity Act
Frequently Asked Questions
Why did Bitcoin surge by 11% in two days?
Bitcoin reached $71,673.84 due to two combined factors: the hope of progress on the Clarity Act after a meeting of crypto leaders at the White House, and the drop in U.S. bond yields linked to the Treasury’s announcement on bond buybacks.
What is the Clarity Act and why does it matter for the crypto sector?
The Clarity Act is legislation currently stalled in the U.S. Congress. Trump describes it as “very powerful legislation” that would allow the United States to maintain a strategic advantage over China in the cryptocurrency sector.
Why did Hyperliquid rise by 27%?
Trump announced that efforts are underway to integrate Hyperliquid into the United States, which led to a more than 27% increase in the platform’s stock.
Why It Matters
The recent surge in Bitcoin's price reflects a broader optimism in the crypto markets, driven by potential regulatory clarity with the renewed discussion of the Clarity Act. Such legislative developments are significant, as they could establish a more defined legal framework for cryptocurrencies in the U.S., potentially attracting institutional investment and fostering market stability. Additionally, the involvement of high-profile political figures underscores the growing importance of cryptocurrency in national economic conversations, impacting investor sentiment and market dynamics.
