Bitcoin jumps above $77,000 on US crypto policy hopes

Bitcoin experienced a significant surge on Friday, breaking above the $77,000 mark. This climb was propelled by renewed optimism surrounding potential U.S. cryptocurrency legislation and a broader shift towards riskier assets, spurred by the U.S. Treasury's unexpected move to increase its bond buybacks.

The world's largest cryptocurrency by market value saw a 6.9 percent increase, reaching $77,675.94. This marked its highest level since May and represented a gain of over 20 percent since Wednesday. Friday was the third consecutive day Bitcoin experienced a jump of more than five percent.

The rally gained momentum after U.S. President Donald Trump urged lawmakers on Wednesday to pass the Clarity Act, a bill aimed at fostering cryptocurrency use that has faced hurdles in the Senate. Concurrently, the U.S. Treasury's decision to double its sovereign bond buybacks to lower long-term borrowing costs significantly boosted investors' appetite for risk.

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Renewed optimism around crypto progress in Washington helped light a fire under Bitcoin.

This intervention by the Treasury came after the 30-year Treasury yield had climbed to levels not seen since 2007, just prior to the global financial crisis. The prospect of lower yields on safer investments made them less appealing, consequently driving demand towards riskier assets such as cryptocurrencies.

"Renewed optimism around crypto progress in Washington helped light a fire under Bitcoin," commented Bret Kenwell, a U.S. investment analyst at eToro. He added, "Falling Treasury yields and short liquidations added fuel to the rally."

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Falling Treasury yields and short liquidations added fuel to the rally.