Bitcoin rose by more than 4 per cent in early Asia trading, continuing a tear that began on Wednesday after the US Treasury revealed plans to rein in long-term bond yields and US President Donald Trump called for passing crypto legislation.
Bitcoin climbed as high as $75,740 but gave up some gain to trade at $74,806.41, at 8.28am UAE time. The original cryptocurrency has surged almost 8 per cent in the past 24 hours, according to Coinbase data.
The market enthusiasm for Bitcoin is has gaining momentum since since Treasury Secretary Scott Bessent announced the department would double the size of its bond buybacks.
Bitcoin is now up almost 20 per cent this week.
Optimism around cryptocurrency was also bolstered when President Donald Trump met with industry leaders, including executives from Coinbase Global and Payward.
Mr Trump urged the Senate to pass the Clarity Act, a crypto market structure bill that has stalled over a fight regarding ethics provisions.
Mr Trump is a proponent of cryptocurrency and virtual supports legislation to broaden the market. He promised on the campaign trail to make the US the “crypto capital of the world” and has has profited from his own crypto ventures.
On Wednesday, he called on lawmakers to pass a “fair version of the Clarity Act”.
The significance of this move will have an impact beyond Bitcoin’s immediate price movement,” Ryan Lee, chief analyst at Bitget Research, said.
“The focus of the US administration to establish a clearer policy framework for digital assets will serve as a template for other emerging markets to regulate the fast-growing crypto industry in their respective countries.”
In the coming weeks, the market will be “in wait and watch mode” to see if the political will translates into legal progress, Mr Lee said.
“If the Clarity Act makes progress, it could boost investor confidence and spark a broader recovery in digital assets.
He however, warned that any ambiguity or political impasse will add to market volatility.
Matthew Sigel, head of digital assets research at VanEck, however said that the Bitcoin’s price reaction “isn’t about the US Clarity Act”, which many market participants have been pointing to.
“This is about what the US Treasury has done, which is reigniting fears of fiscal dominance,” he said in a note.
With inputs from agencies