Bitcoin jumped more than 4% on Thursday to its highest level since late May after US President Donald Trump urged Congress to advance legislation establishing clearer rules for digital assets. An earlier decline in long-term Treasury yields and strong inflows into spot Bitcoin exchange-traded funds added momentum to the rally.
Market Snapshot
Bitcoin (BTC/USD) rose 4.4% to $72,772.30 by 2133 GMT after reaching an intraday high of $72,960.30, its strongest level since 31 May. The move extended a recovery from below $70,000 and triggered heavy short-covering across cryptocurrency markets.
More than $1 billion of bearish Bitcoin positions were liquidated within roughly an hour, according to Coinglass data cited by Investing.com. Across the wider crypto market, short liquidations reached a record $2.7 billion during the surge.
Ether gained more than 2% during the session, while crypto-linked US shares also advanced. Coinbase Global (COIN.O) rose 6.1% and Strategy (MSTR.O), the largest corporate holder of Bitcoin, gained 4%. Bitcoin miner Canaan (CAN.O) climbed more than 10%.
Trump Pushes Clarity Act
Trump called on lawmakers on Wednesday to pass a “fair version” of the Clarity Act during a White House meeting attended by cryptocurrency executives, including Coinbase Chief Executive Brian Armstrong and Robinhood Chief Executive Vlad Tenev. SEC Chair Paul Atkins and CFTC Chair Mike Selig also attended.
The legislation is intended to clarify when digital assets should be treated as securities or commodities and divide oversight responsibilities between the Securities and Exchange Commission and Commodity Futures Trading Commission.
The bill has stalled in the Senate amid disagreements over stablecoin yields and concerns about political officials profiting from cryptocurrency ventures. Some lawmakers have said they will not support the legislation without stronger restrictions covering such conflicts.
Bo Pei, an analyst at US Tiger Securities, said Trump’s comments were “incrementally positive” because they showed the White House was applying more direct pressure on Congress to advance the legislation.
Treasury Move Supports Risk Assets
Bitcoin also benefited after the US Treasury said it would double the size of buybacks for 10-year to 30-year government debt to at least $4 billion per operation.
The announcement initially pushed long-term Treasury yields lower after a recent bond sell-off had driven the 30-year yield to its highest level since 2007. Lower yields can support Bitcoin and other risk assets by reducing returns available on safer government securities.
Bond-market relief proved temporary, however. Treasury yields subsequently resumed their advance as investors questioned whether the relatively modest buybacks could counter concerns about US deficits and inflation.
Alex Kuptsikevich, chief market analyst at FxPro, said the cryptocurrency rally was then accelerated by “a wave of short-covering” after several weeks of unusually narrow trading.
ETF Demand Strengthens
Institutional demand provided another source of support. US spot Bitcoin ETFs recorded $517.2 million of net inflows on Wednesday, their strongest daily intake since early May, according to SoSoValue data cited by Investing.com.
BlackRock’s iShares Bitcoin Trust accounted for about $284.7 million of those inflows, while Ark and 21Shares’ ARKB attracted $77.7 million and Fidelity’s FBTC received $62.4 million.
The flows suggest investor interest has strengthened as Bitcoin recovered from recent weakness, although the cryptocurrency remains substantially below its record high and has fallen about 18% since the start of 2026, according to Reuters.
Regulatory Shift Broadens
Trump’s comments followed an SEC proposal on 18 August for a new regulatory framework that would make it easier for some cryptocurrency companies to issue tokens and raise capital.
The proposal includes exemptions for certain offerings and a potential safe harbour preventing qualifying digital assets from being classified as investment contracts. The measures are subject to public consultation and would not replace the need for legislation establishing longer-lasting rules.
The combination of executive support, SEC rulemaking and renewed congressional pressure has encouraged expectations of a more predictable US regulatory environment for digital assets.
Outlook
Bitcoin traders will watch whether the cryptocurrency can hold above $70,000 after Thursday’s short-covering rally and whether spot ETF inflows continue.
Attention will also focus on progress in Congress on the Clarity Act and Federal Reserve Chair Kevin Warsh’s remarks at the Jackson Hole symposium. Renewed increases in Treasury yields could pressure cryptocurrencies, while clearer regulation and sustained institutional demand could support Bitcoin’s attempt to extend its recovery above $72,000.
