Bitcoin surges 22% for the week as investor optimism floods back

Bitcoin is poised for a weekly increase of approximately 20% by early Friday, following a series of positive developments for the world's leading cryptocurrency.

As of the latest data, Bitcoin is trading at $75,343.01, a notable rise from its starting price of $62,836.88 at the beginning of the week. The positive trend extended to related crypto stocks on Thursday, with Coinbase and Circle closing up by 7.5% and 6.45% respectively, while Strategy saw a 7.8% increase.

The current rally began on Wednesday when Treasury yields experienced a sharp pullback after the US Treasury's significant intervention in the bond market, which subsequently eased pressure on risk assets.

This shift contributed to a broader movement into the crypto market, which was further amplified by a massive short squeeze. According to CoinGlass, approximately $2.7 billion in crypto short positions were liquidated.

Max Stuedlein, Head of Partnerships at Sygnum APAC, explained that Bitcoin's performance is a result of converging macroeconomic and policy catalysts. He noted, "The Treasury's decision to double its buybacks of long-dated government debt is aimed at addressing long-term yield concerns, where borrowing costs have been rising due to worries over US debt levels and partial crowding out by debt issuances of hyperscalers."

Investor sentiment received another boost on Thursday, largely driven by a final push from the White House and crypto industry leaders to advance the Clarity Act in the coming weeks. While the bill is considered a crucial catalyst that could potentially lift the market out of the crypto winter that began last fall, its chances of passing remain uncertain.

Despite this recent surge, Bitcoin is still trading below its 2026 peak of $94,820, achieved in mid-January, and its all-time high of $126,198, recorded on October 6 of the previous year.