Bitcoin on track for 23% weekly gain as investor optimism floods back
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- Bitcoin was trading 6% higher at about $77,000 on Friday, up from roughly $62,800 at the start of the week, putting the cryptocurrency on track for a ~23% weekly gain.
- Crypto-linked stocks rallied alongside, with Coinbase and Circle each advancing more than 9% and Strategy gaining 7%.
- The rally began Wednesday when the U.S. Treasury's intervention in the bond market pulled yields back sharply, easing pressure on risk assets across markets.
- A massive short squeeze liquidated roughly $2.7 billion in crypto short positions during the rally, according to CoinGlass data cited in the article.
- Max Stuedlein, head of partnerships at Sygnum APAC, attributed the move to the Treasury doubling its buybacks of long-dated government debt to address rising long-term yield concerns tied to U.S. debt levels.
- Investor sentiment improved further on Thursday amid a last-ditch White House and crypto-industry push to pass the Clarity Act in coming weeks, though the article notes the bill's chances of passage appear relatively slim.
- Lucy Gazmararian, founder of Token Bay Capital, told CNBC she expects one final 20% drop to complete the crypto bear cycle, calling bitcoin 'a play against monetary debasement.'
- Despite the rally, bitcoin remains well below its 2026 high of $94,820 (mid-January) and its all-time high of $126,198 hit on October 6 of last year.
Why it matters: Roughly $2.7 billion in leveraged crypto shorts were wiped out in days, showing how concentrated bearish positioning can violently reverse on macro catalysts. For traders, the convergence of Treasury debt-buyback intervention and legislative momentum around the Clarity Act has reset sentiment, but bitcoin still trades below its January high of $94,820, and skeptics like Gazmararian argue one more 20% drop may come first.
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