Bitcoin Surges 23% Weekly on Yields Drop, Short Squeeze, Crypto Bill Hopes

Bitcoin was on track for a weekly gain of approximately 23% on Friday, reaching $77,226.96, up from $62,836.88 at the start of the week.

The cryptocurrency's rally began Wednesday after Treasury yields pulled back sharply following the Treasury's intervention in the bond market, easing pressure on risk assets and triggering a broader move into crypto. This was amplified by a massive short squeeze, liquidating roughly $2.7 billion in crypto short positions. Investor sentiment improved further on Thursday due to White House and crypto industry efforts to pass the Clarity Act, a bill viewed as a key catalyst for exiting the crypto winter, though its chances of passing appear slim.

Bitcoin remains below its 2026 high of $94,820 and its all-time high of $126,198. Lucy Gazmararian, founder and managing partner at Token Bay Capital, stated that crypto is nearing the end of its bear market, expecting one final drop before a recovery. The US Treasury doubled its buybacks of long-dated government debt to address rising borrowing costs and long-term yield concerns. Ether, the second-largest cryptocurrency, and other digital assets surged on the same wave of positioning and momentum.