Bitcoin jumps above $77,000 on US crypto policy hopes

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Bitcoin surged Friday on optimism over US cryptocurrency legislation and the US Treasury’s surprise move to buy back more of its own bonds, which fuelled a shift to riskier assets.

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The world’s biggest cryptocurrency by market value climbed 6.9 percent to $77,675.94, after reaching its highest level since May, and is up more than 20 percent since Wednesday.

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Friday was the third consecutive day in which bitcoin jumped more than five percent.

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The sharp rise came after US President Donald Trump urged lawmakers on Wednesday to pass the Clarity Act, a bill to spur cryptocurrency use that has stalled in the Senate.

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Bitcoin was also boosted by the US Treasury’s bid to lower long-term borrowing costs by doubling its sovereign bond buybacks, a move that lifted investors’ risk appetite.

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The intervention came after the 30-year Treasury yield surged to levels last seen in 2007, just before the global financial crisis.

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The prospect of lower yields makes safer investments less attractive, helping to drive demand for riskier assets such as cyptocurrencies.

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“Renewed optimism around crypto progress in Washington helped light a fire under Bitcoin,” said Bret Kenwell, US investment analyst at eToro.

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“Falling Treasury yields and short liquidations added fuel to the rally,” he said.

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AFP

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