Bitcoin surges above $71,000 as Trump backs crypto bill and Treasury yields fall

Bitcoin (COIN:BTCUSD) jumped sharply on Thursday, leading a broad recovery across cryptocurrency markets after U.S. President Donald Trump urged Congress to advance key digital asset legislation and falling Treasury yields boosted appetite for riskier assets.

Sentiment was also lifted by the U.S. Treasury's decision to double the size of its debt buyback operations, a move that triggered a steep decline in government bond yields and helped fuel demand for cryptocurrencies.

Bitcoin climbed 11% to $71,505.7 by 04:42 ET (08:42 GMT), having reached an intraday high of $71,700, its strongest level since early June.

The sudden move caught bearish traders off guard. Coinglass data showed that more than $1 billion of Bitcoin short positions were liquidated in roughly one hour, while a record $2.7 billion of bearish positions were erased across the wider cryptocurrency market.

Geopolitical uncertainty remained a potential constraint, however, as oil prices continued to rise amid the U.S.-Iran conflict and Trump's pledge to introduce tougher economic measures against Tehran.

Trump urges Congress to approve Clarity act

Trump used a White House meeting with cryptocurrency industry executives on Wednesday to press lawmakers to approve the Clarity act, legislation intended to establish a broader regulatory framework for digital assets in the United States.