On the Chain: Bitcoin holds above US$72,000 as Trump crypto push and historic short squeeze drive rally

Bitcoin remained above US$72,000 early Friday after its strongest rally in months, as improving US regulatory sentiment, lower bond yields and a record wave of short liquidations propelled the broader cryptocurrency market higher.

In the latest pricing, Bitcoin was around US$72,615, up more than 5%, while Ethereum was near US$2,317, up around 4.8%. XRP was among the strongest major tokens, trading around US$1.24 after gaining almost 13%, while Solana also participated in the broader advance.

Bitcoin reached an intraday high of about US$72,844, its highest level since June 1, extending a four-day advance of roughly 14%.

Trump and Treasury moves lift sentiment

The rally accelerated after US President Donald Trump renewed calls for Congress to advance digital asset market structure legislation following discussions with cryptocurrency industry executives.

Trump’s backing of the stalled CLARITY Act, which aims to establish clearer regulatory treatment for digital assets, helped revive expectations that the US regulatory environment could become more supportive of the industry.

Cryptocurrencies were also supported by the US Treasury’s decision to expand purchases of longer-dated government debt. The move drove Treasury yields lower and weakened the US dollar, providing a favourable backdrop for Bitcoin and other alternative assets.