Bitcoin surged above $79,500 on Friday, marking its strongest level in months as traders rushed to close bearish positions and signals from Washington pointed to easier financial conditions and stronger support for the cryptocurrency industry.
The world’s largest cryptocurrency reached an intraday high of $79,500 before retreating to around $77,700. The move left Bitcoin more than 25% higher than it was at the start of the week, making it one of the digital asset’s sharpest weekly rallies in years.
Bitcoin had spent much of 2026 struggling to regain momentum after falling from its record high of about $126,000 reached in October last year. The cryptocurrency dropped to roughly $57,600 in early July and then traded in a narrow range between $62,000 and $66,000 for six consecutive weeks.
The prolonged weakness encouraged traders to increase bets that Bitcoin would fall further. Once the cryptocurrency broke above its recent trading range this week, those positions were rapidly unwound, creating a wave of forced short covering that accelerated the price increase.
Ether, the second-largest cryptocurrency, and other digital assets also gained as traders moved back into riskier assets.
Market momentum was strengthened by signs of additional liquidity from the US Treasury. The department doubled the size of its bond buybacks earlier this week in an effort to ease pressure in the Treasury market. When bond yields rose again, Treasury Secretary Scott Bessent said on Thursday that the government could increase the buybacks further.
Lower borrowing costs, improved liquidity and a weaker dollar can encourage investors to put more money into assets considered riskier, including cryptocurrencies.
Regulatory developments in Washington also supported the rally. On Tuesday, the US Securities and Exchange Commission proposed “Regulation Crypto Assets”, which would introduce lighter registration requirements for some cryptocurrency issuers.
President Donald Trump added to the industry’s optimism when he hosted several major crypto executives at the White House on Wednesday. Among those attending were Coinbase Chief Executive Brian Armstrong, Ripple Chief Executive Brad Garlinghouse and Gemini founders Cameron and Tyler Winklevoss.
Trump urged lawmakers to approve the long-delayed Digital Asset Market CLARITY Act. The legislation would divide regulatory responsibility for digital assets between the SEC and the US Commodity Futures Trading Commission. It passed the House last year but remains stalled in the Senate, where it will face a key procedural vote on September 15.
Trump’s comments also sparked a sharp move in Hyperliquid’s HYPE token. He said the CFTC was working to bring the decentralised derivatives exchange onshore in a fully compliant manner.
HYPE jumped about 25% within 24 hours of the remarks and was trading near $74, more than 30% above its level before Trump’s comments. Hyperliquid has become a closely watched example of how far the administration’s more supportive approach to the crypto sector could extend.
