Bitcoin surged on Thursday, leading a broad cryptocurrency rebound after U.S. President Donald Trump urged Congress to approve a key piece of crypto regulation.
Digital assets also benefited from stronger risk appetite after the U.S. Treasury announced plans to double the size of its debt buyback operations, triggering a sharp decline in Treasury yields.
Bitcoin climbed 3.74 percent to $71,887 by 9:47 GMT, after reaching its strongest level since early June.
Trump urges Congress to advance Clarity Act
Bitcoin’s sharp rally triggered the liquidation of more than $1 billion in short positions in about an hour, according to Coinglass. Across the wider crypto market, a record $2.7 billion worth of bearish positions were liquidated as digital tokens jumped.
However, uncertainty surrounding the U.S.-Iran conflict continued to weigh on sentiment. Oil prices extended their gains after Trump pledged to impose tougher economic measures on Tehran.
Trump on Wednesday urged Congress to advance the Clarity Act, a key piece of cryptocurrency legislation, during a White House meeting with industry executives.
The president called for lawmakers to approve a fair version of the bill, which crypto advocates say would create a comprehensive regulatory framework for digital assets in the U.S.
The meeting brought together several prominent crypto executives, including Coinbase CEO Brian Armstrong and Robinhood CEO Vlad Tenev, along with senior officials such as U.S. Commodity Futures Trading Commission Chair Mike Selig and Securities and Exchange Commission Chair Paul Atkins.
Lawmakers remain divided over how cryptocurrencies should be regulated
The Clarity Act has faced delays in Congress as lawmakers remain divided over how cryptocurrencies should be regulated. Disagreements have also centered on whether stablecoin issuers should be allowed to offer yield payments on deposits. The banking sector has strongly opposed such payments, arguing they could draw funds away from traditional interest-bearing savings accounts.
The meeting came as Trump and his family face increased scrutiny over the financial gains from their crypto-related ventures amid the administration’s push for industry-friendly regulation.
Filings released in July showed that Trump had received more than $1.4 billion from his family’s cryptocurrency businesses.
Meanwhile, the CFTC is scheduled to meet with crypto industry executives on Thursday as regulators continue discussions on establishing clearer rules for the sector.
Read: Bitcoin falls to $64,331 as investors assess fresh U.S. regulatory proposals, Mideast tensions
Crypto-linked stocks surge
Crypto-linked stocks surged alongside Bitcoin in premarket trading on Thursday, as investors piled into digital-asset-related equities during the broader market rebound. Coinbase Global, the largest U.S. cryptocurrency exchange, climbed about 7 percent, while Bitcoin treasury firm Strategy, founded by Michael Saylor, jumped nearly 10 percent.
Stablecoin issuer Circle Internet Group advanced 6 percent, while American Bitcoin, the mining and treasury company co-founded by Eric Trump, soared more than 11 percent. Robinhood, MARA Holdings and Riot Platforms each gained around 4 percent.
Other major cryptocurrencies outperformed Bitcoin as investors moved into assets that had lagged in recent months, triggering a wave of bargain buying.
Ether, the world’s second-largest cryptocurrency, jumped 18.3 percent to $2,274.60 after earlier reaching a 15-month high.
XRP and Solana climbed 14.2 percent and 13.4 percent, respectively, while BNB gained 6.3 percent. Cardano also advanced 8.5 percent.
