Bitcoin surged on Thursday, leading a broad recovery across the cryptocurrency market after U.S. President Donald Trump called on Congress to advance major crypto legislation.
Improving risk sentiment also helped digital assets after the U.S. Treasury announced plans to double the size of its debt buyback operations, which pushed bond yields sharply lower.
Bitcoin Climbs Above $72,000
Bitcoin jumped about 10.7% to $72,006.70 by 09:23 ET.
The world’s largest cryptocurrency climbed as high as $72,496 during the session, reaching its strongest level since early June.
The sharp move triggered a wave of liquidations across the market.
According to Coinglass data, more than $1 billion in Bitcoin short positions were liquidated within roughly one hour.
Across the wider crypto market, around $2.7 billion in bearish positions were wiped out as prices moved sharply higher.
Institutional Bitcoin Ownership Remains in Focus
Owen Yang, CEO of UPay, said the latest developments may have a bigger impact on Bitcoin ownership than on its underlying investment case.
He suggested that Bitcoin holdings could gradually shift away from retail investors and toward larger institutional players over time.
That trend has already gained momentum as regulated investment products make Bitcoin increasingly accessible to traditional investors.
Bitcoin ETFs Record Strong Inflows
U.S. spot Bitcoin ETFs also saw a significant increase in investor demand.
According to SoSoValue, the funds recorded $517.19 million in net inflows on Wednesday, their strongest daily total since early May.
Eight of the 12 tracked Bitcoin ETFs attracted fresh capital.
BlackRock’s IBIT led the group with approximately $284.7 million in inflows.
Ark & 21Shares’ ARKB followed with about $77.7 million, while Fidelity’s FBTC attracted roughly $62.4 million.
The strong inflows added further momentum to Bitcoin’s recovery.
Trump Calls for Passage of the CLARITY Act
The rally also followed renewed political support for cryptocurrency regulation in the United States.
During a White House meeting with crypto industry leaders on Wednesday, Trump urged Congress to approve what he called a fair version of the CLARITY Act.
Supporters of the legislation argue that it could establish a clearer regulatory framework for digital assets in the United States.
Major crypto executives attending the meeting included Coinbase CEO Brian Armstrong and Robinhood CEO Vlad Tenev.
Senior regulators, including CFTC Chair Mike Selig and SEC Chair Paul Atkins, were also present.
CLARITY Act Faces Political Obstacles
Despite support from the crypto industry, the CLARITY Act has struggled to advance through Congress.
Lawmakers remain divided over several issues, including how different digital assets should be regulated.
Another major point of disagreement involves interest or yield payments on stablecoin deposits.
Traditional banks have raised concerns that yield-bearing stablecoins could compete directly with savings accounts and potentially draw deposits away from the banking system.
The CFTC is also expected to meet with crypto executives to discuss additional regulatory issues.
U.S.-Iran Tensions Remain a Risk
Despite the positive momentum in crypto markets, geopolitical risks remain elevated.
Oil prices continued to rise as Trump threatened tougher economic measures against Iran.
Ongoing tensions between Washington and Tehran could still weigh on global risk appetite if they intensify further.
For now, however, falling bond yields and stronger expectations for regulatory clarity have provided support for Bitcoin and other risk assets.
Crypto Stocks Rally Alongside Bitcoin
Crypto-related stocks also moved higher in early U.S. trading.
Coinbase Global gained roughly 4.5%, while Strategy, the Bitcoin-focused treasury company founded by Michael Saylor, climbed nearly 6%.
Stablecoin issuer Circle Internet Group advanced around 2%.
American Bitcoin rose more than 5%, while Bitcoin miners also posted strong gains.
MARA Holdings climbed approximately 7.2%, while Riot Platforms added around 3.7%.
Ethereum and Altcoins Outperform Bitcoin
The broader cryptocurrency market posted even stronger percentage gains than Bitcoin.
Ether jumped nearly 19% to around $2,293.60, after briefly reaching a 15-month high.
XRP surged roughly 19%, while Solana gained more than 11%.
BNB rose about 6.4%, while Cardano advanced approximately 11.5%.
Dogecoin climbed around 10%, while the TRUMP memecoin gained approximately 18%.
The stronger performance among altcoins suggests that improving risk appetite is spreading beyond Bitcoin into the wider digital asset market.
Crypto Market Sentiment Improves
Bitcoin’s move above $72,000 reflects a combination of stronger institutional demand, improving market liquidity and renewed optimism surrounding U.S. cryptocurrency regulation.
ETF inflows, falling Treasury yields and Trump’s call for clearer crypto legislation have all contributed to the latest rally.
However, geopolitical uncertainty and ongoing disagreements over the CLARITY Act remain important risks.
For now, investors will be watching whether Bitcoin can maintain momentum above $72,000 and whether stronger demand continues to spread across the broader crypto market.
