Bitcoin Surges 23% Weekly on Yields Drop, Short Squeeze, Crypto Bill Hopes
The Story
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.
The Spread
What they agree on
- Bitcoin experienced a price increase this week, with gains around 20-25%.
- The rally is attributed to a combination of factors including falling Treasury yields and a short squeeze.
- Investor optimism has returned to the cryptocurrency market.
- The Clarity Act, a crypto market structure bill, is mentioned as a potential catalyst for the market.
- US Treasury actions to manage bond yields are cited as a contributing factor.
Where they split
- CNBC and Bloomberg report Bitcoin on track for a 23% weekly gain, while Euronews states it is up more than 25% since Monday.
- CNBC and Token Bay Capital suggest the market is nearing the end of a bear market, with Token Bay Capital predicting one final drop, a detail not emphasized by other outlets.
- The National and Bloomberg mention President Donald Trump's call for passing the Clarity Act, with The National detailing his campaign promise and past crypto ventures, while other outlets focus more broadly on White House efforts.
- CNBC and Token Bay Capital provide specific figures for short position liquidations ($2.7 billion) and Bitcoin's current price ($77,226.96), which are not consistently detailed across all sources.