Bitcoin jumped more than 8% to around $78,150 on Friday, putting the cryptocurrency on course for its strongest weekly gain since March 2024.
The world’s largest digital asset reached an intraday high of $79,194, having traded below $64,000 earlier in the week. Bitcoin is now up roughly 20% over the past five sessions.
The rally has been supported by improving sentiment in the US, including President Donald Trump’s call for lawmakers to advance the Clarity Act, which is intended to provide a clearer federal regulatory framework for digital assets.
Institutional demand has also strengthened through spot Bitcoin exchange-traded funds, adding further support to the move.
Sentiment was boosted further by the US Treasury’s decision to expand purchases of longer-dated government debt. While the measure is not quantitative easing, investors initially interpreted it as supportive of liquidity and potentially lower borrowing costs.
A major short squeeze then accelerated the rally. More than $4 billion of bearish cryptocurrency positions have reportedly been liquidated over the past two days, including around $1 billion on Friday across the broader crypto market.
