Bitcoin rockets past $71,000 as regulatory hopes ignite crypto comeback

Bitcoin (COIN:BTCUSD) powered above $71,000 on Thursday as improving expectations for U.S. cryptocurrency regulation and a sharp retreat in Treasury yields triggered a broad rebound across digital assets.

The world's largest cryptocurrency received another boost from improving risk sentiment after the U.S. Treasury announced plans to double the size of its debt buyback operations. The move sent government bond yields sharply lower, creating a more supportive environment for speculative assets.

Bitcoin jumped 11% to $71,505.7 by 04:42 ET (08:42 GMT), having briefly traded as high as $71,700. That marked its strongest level since early June.

The speed of the rally inflicted heavy losses on traders positioned for further declines. Coinglass data showed more than $1 billion in Bitcoin short positions were liquidated in around an hour, while bearish liquidations across the wider cryptocurrency market reached a record $2.7 billion.

Investors were still monitoring geopolitical risks, however, as oil prices extended their advance following President Donald Trump's threat of tougher economic measures against Iran.

White House meeting puts Clarity act back in spotlight

The regulatory backdrop improved after Trump met cryptocurrency industry leaders at the White House on Wednesday and urged Congress to move ahead with the Clarity act.