Bitcoin Heads for a 20% Weekly Gain Amid Dropping Bond Yields and Crypto Optimism
Bitcoin surged strongly this week, heading for gains of nearly 20%, supported by a series of positive developments for the world's largest cryptocurrency. The rally was fueled by a decline in U.S. Treasury yields and an improved investor appetite for high-risk assets, with the digital coin climbing from $62,836 at the start of the week to approximately $77,840.
The upward momentum began on Wednesday after U.S. Treasury yields dropped sharply following the Treasury Department's intervention in the bond market. This move eased pressures on risk-on assets and helped channel liquidity back into the cryptocurrency market.
The gains were later amplified by massive liquidations of short positions. According to CoinGlass data, nearly $2.7 billion worth of short positions were liquidated across the crypto market.
"Clarity" Act Boosts Optimism
Investor sentiment improved further on Thursday as the White House and crypto industry leaders intensified efforts to pass the "Clarity" Act in the coming weeks.
The proposed bill is widely viewed as a major catalyst that could help the cryptocurrency market recover from the downturn that began last autumn, although its chances of being enacted still appear relatively slim.
Despite this recent rally, Bitcoin remains below its 2026 high of $94,820, recorded in mid-January. It also stands significantly below its all-time record high of $126,198, which was reached on October 6 of last year.